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Something interesting taking place in the General Markets
SPX - Here we see the ICL in November and 2 dcls that followed. Obviously the markets have been relatively strong, because those dips down into their dcls have been shallow. Over the last 2 weeks I mentioned concerns about the XLF and then the SPX broke below the 50sma last week. The 'timing' dictates that an ICL is coming due and since the XLF has been weak, so I would expect more of a dip now or soon. At this point, I'm actually noticing some interesting developments taking place here too, so let's discuss that. Notice how the recent consolidation does look similar to the last one at the dcl...
Note: That last dcl has not been broken and a break out here is not out of the question, and here is why.
Read MoreLet's review what the markets have been doing and what that can mean for this weeks trading.
I have repeatedly said that the condition of the financials has concerned me when viewing the markets. Weakness there could bleed over into the general market.
XLF - Friday the XLF broke to a new low, taking out the last DCL. I now expect the financials to sell off over time.
XLF WEEKLY - The weekly chart shows the weakness too.
Read MoreAs stated before here, there are clearly times to trade and then there are times to just be patient. The best times to trade are after consolidations or bases finish forming , and then the trending moves out of those time periods can continue to carry positions higher. Until that time, trading inside of consolidation periods can be frustrating.
Read MoreToday I want to address how, even though we can see movement within 'cycle expectations' get stretched or a bit extended, it is still just a matter of time before Markets seek their lows. I will discuss this in the Precious Metals Section of the report.
SPX - Though this reversal can be viewed as bullish and be bought with a stop under the lows, We still need to see a break out and follow through.
Lat's look at the NASDAQ...
Read MoreThe markets remain a bit choppy, but some of the set ups that we have been discussing are beginning to play out nicely. I have a few more trade set ups for us too, so let's review...
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USD - Starting with the USD, this may pause here for a bit. A short dip in the USD could cause a short pop in Gold & Miners.
Read MoreAs time moves forward, the Market big picture always become clearer, so let's see what has been happening this week, with a few added 'surprises'. I'll also add in 3 more trade ideas.
SPX - This is a possible inverse H&S forming now. The DCL would be the head, and whether or not you took a long trade while waiting to see how this develops ( I have had concerns based on the XLF and a few other factors) you can see that you have not missed any great move in these choppy markets. Notice that Price is STILL the same price as day 1, the first day after the swing low! That said, If you want to go long based on the possible inverse H&S and place a stop under the 50sma with a little wiggle room, this is as good a place as any to do that risk reward wise.
NYA - I was concerned with the dropping MACD , so I still have concerns there...
XLF - One of my main concerns was the financials and bank stocks like GS, BAC, JPM, etc. Until I see a recovery, I will still be concerned, but again, price is at a low risk reward area in some of the General Markets. I am not Long or short currently.
NASDAQ - We Don't want to get too bullish and forget this chart from Thursdays report of the NASDAQ on Wednesday. This is still in place and that MACD has dropped further. Markets have just been very choppy and volatile and I am still cautious on their ability to gain more upside at this point. They need to prove themselves and the Financials need to do that soon, in my opinion.
Read MoreThe short term unknown ...
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NYA - The markets look set up to break out higher, but we need to see some signs of strength.
You recall that I've been watching this...
Read More I need to keep this report SIMPLE. Best wishes to me on that one...
ALL EYES ON GOLD & THE USD THIS MORNING-
The 200sma is at $1262 and that has acted as resistance in the past few days (so far)
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