Wednesday May 29th – Nowhere fast
The choppiness remained for the start of this week, so things continued to go nowhere fast.
SPX – We are due for a bounce unless the one with a day 3 peak was all we get? The SPX remains under the 50 & 10sma. Maybe the SPX wants to tag that 200 sma before putting in a good bounce, but so far this is choppy weakness.
TRAN – Rejected at the 50 & 200sma, the Transports are at the March lows. Any lower on Wednesday and price breaks those lows and price going back to January.
RUT – The Russell 2000 is weaker, choppy, and is breaking lows already.
1 Month ago the Bulls were very excited and ‘all in’ buying dips and still calling for an endless rally. Today this Fearful Reading is already becoming extreme. After repeatedly entering on the dips and bounces, the choppiness is chopping them up and now Extreme fear is here already. This really is when we usually see a bounce.
WTIC – Oil is bouncing, but it broke down early in the daily cycle, so this should actually be a bear flag / maybe a back test of the 200 sma coming up. For those that like to go short ( or bearish etf), this bounce may be short-lived and reverse lower to break down on the next reversal. Wed is usually Oil inventory release, but it may be pushed to Thursday with the holiday week.
GOLD – Gold sold off Tuesday, but basically remains choppy. The lows are in place, but this could go either way at this point. This sloppy choppy trading environment is non productive so far.
EDIT : GOLD LIVE 7 a.m. Eastern Time – I thought that I would look at this choppiness close up on a 2 hr chart. Gold rallied at Fed Minutes, and it broke down Tuesday, possibly running the stops. Since then, Gold is now up a little bit as seen, but remains choppy. A break above 1288 would be nice, since it could lead to a run to recent highs.
SILVER – Silver broke down to new lows. Gold hasn’t broken the lows, but Silver has no sign of good buying in Silver.
GDX – GOLD & SILVER sold off and Miners sold off just a little bit too. GDX was down 15 cents and remains choppy. A triangle can be a consolidation and continuation of the trend ( which was down), so be careful if you are in it, use stops, keep positions small. There will be no big loss here if someone bought the lows and gets stopped out, but this choppiness is frustrating and boring.
GDX AT THE CLOSE – At the very close, GDX popped out of a downtrend on the 5 day / 30 minute chart, so maybe it’ll bounce higher Wednesday. We’ll see, but even so, it could just remain choppy .
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As you can see from the above charts in pretty much every sector, Nothing has really changed at the start of the trading week in the U.S. It is hard to recommend anything except for a little more patience when they remain choppy and sideways, also known as boring and frustrating. I was trading a few set ups and locked in some small gains on a few and got stopped out of a few at this point. I locked in gains on VIVE and LBUY for example, but I even got stopped out of KL for a small loss yesterday under the 50sma.
For examples of some leaders that I was watching as they continued trying to make gains despite the market sell off, you can look at charts of : AEP, CCI, AMT, COUP, AMD, ROKU, GOGO, etc – These were part of my list from last weeks observations that I wanted to discuss this week, but now they dropped Friday or Tuesday and look a bit choppy too, so with that, I think that we’ll just have to wait and see how things play out Wednesday.
Let’s see what Wednesday brings our way and go from there. Enjoy your day!
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~ALEX
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PLATINUM – I had this chart for the weekend report and forgot to post it. I simply wanted to show a few things about Platinum.
1. The last ICL actually broke the 2016 lows, while Gold & Silver didn’t. Much weaker than Gold.
2. Currently it has a 1 year series of higher lows and higher highs, but has been really selling down into this ICL.
3. So I’d like to see if Platinum holds above that Feb higher low during this sell off.
