Friday August 25th
The General Markets dumped yesterday after a very bullish looking open. The USD remained strong and yet Gold, Silver, and the Miners held up well. Fed Chair Powell gives the opening speech at Jackson Hole summit at 10:05 today, and that can affect the markets. Let’s take a look…
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NASDAQ 10:13 am: After a bullish earnings report was released by NVDA and a few other companies, the futures were strong and the markets looked set to open higher. Well, The Markets did gap open higher. They tagged resistance and then reversed and started to sell off, so I grabbed this chart…
NASDAQ: And now we have what is known as a bearish engulfing. Price lost both the 50 & 10sma and this is a bearish looking reversal. I have been calling for an ICL drop and we may be starting the next drop.
SPX 10:11 am: The SPX also gapped open higher and started to reverse after tagging resistance ( the 50sma)…
The SPX also continued to sell off and has a bearish engulfing that closed below the 10sma too. I have been discussing an ICL drop and the weakness may be showing up despite that strong NVDA earnings report.
WTIC: Oil has been chopping above the 50sma and below the 10sma. It is due for a dcl at any time, I have it on day 51.
USD 6 am ET Friday: This is a live shot of the USD on Friday morning. It made a new high and is acting more bullishly than bearishly, but thankfully Gold and Silver ignored its’ strength lately. I have questioned whether or not the USD may have put in the 3 yr cycle low 6 months early(?), and I will discuss that further in the weekend report. I would say that it should be considered as a possibility, with the rapid monthly Fed rate hikes, etc.
The USD was rising, the markets were crashing, but GLD dropped and recovered, so I took note of that with the General Markets selling off.
GOLD: On stockCharts, Gold stalled at the 50sma. Spot gold looks different, but basically Gold has bottomed and stalled on day 3.
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Yesterday I wrote:
Looking at GOLD in the bigger picture, you want to view todays surge in the proper perspective. It can be a little choppy at the lows and we can get dips, but this is a buy and hold area for the most part, with the chance that this becomes a massive rally in Gold.
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SILVER has bottomed and stalled after a strong 7 day run.
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GDX 10 am: When the markets started to roll over I posted this chart of the GDX ETF at 10 a.m. It sold off for 15 minutes, tagged the 10sma, and bounced back. Did the Miners survive the General Market sell off?
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It was encouraging to see The GDX ETF (or Miners) recover the morning dip and close down slightly with the USD higher and the general markets quickly selling off to a bearish engulfing.
HMY 10:24 am: I captured HMY trying to recover a morning sell off too, again, as the general markets sold off.
HMY: may be pinched between the 50 & 200sma, but it did not sell off with the general markets.
KGC at 10:22: KGC also tried to resist that sell off. KGC closed break even too.
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AG looks to be at resistance, and even though it recovered to green here, up 4 cents, it did sell off a bit from resistance again, closing down 7 cents.
I noticed the bullish look of AGI as it was heading into the close yesterday. I took a look at how it acted last March and I noticed that it only had an occasional red day once it got going, so this may be one to consider.
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Well, Thursday was a rough day for the general markets, and that was after a few bullish earnings reports were release by a few companies. I have been discussing the drop into an ICL for that area for a while and it looks like we may be seeing that weakness showing up now. To tell you the truth, it was surprising and encouraging to see Gold, Silver, and The Miners resist that selling, but they are due for an ICL right now and I believe that we are seeing the results of an ICL being in place for the Precious Metals.
And now today, more fireworks? We will have The Fed Chair Powell give the opening speech at Jackson Hole summit at 10:05 today, and that can affect the markets with added volatility. I have family visiting from Florida and I will not be around the markets until after noon, so I am going to miss the morning action. Let’s see what Friday gives us for a close to the week! Enjoy your Friday trading.
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