Friday June 10th

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We have 1 trading day left in the week and then we can relax.  The weekend report will further our discussion on Energy and Precious metals, so today I am going to just show you 3 charts that will be in the weekend report.

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You may have heard that you should not buy miners until after a 'blood bath phase'. As mentioned in my May 18 report, I have received emails telling me that warnings are out that the next ICL ( meaningful cycle lows that occur roughly every 5-6 months) will NOT come until we first see a huge sell off.  Many think that will happen around Brexit ( June 23rd).

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I used this chart to show what happened coming out of the 2008 lows, when we looked for our 2nd ICL. I do NOT see a deep bloodbath phase 6 months after Oct 2008 lows. I see higher lows for 1 year, so that is noteworthy.

GDX 2008 ICL SEARCH

 Actually, for 2 weeks I have been saying that we could be at the next important low in the precious metals sector. Last weekends report discussed this idea further and this weekend will include more research in that area .

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June 8 – Coming Together

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The trading has been good for the past few weeks and as time goes by, we are seeing many things coming together as expected.  By the time we get to the weekend report, pieces should fall into place and give us a clearer big picture too.  Lets review some of the recent action and how it has been playing out.

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DJUSST WKLY - I posted charts of STEEL in May and June and expected another run higher. Steel stocks should benefit. 

6-2 STEEL WKLY

STEEL - This is the daily.  Lets look at steel 1 week later. Steels daily 1 week later.

6-2 STEEL

STEEL JUNE 8th - One week later and Steel is breaking out.  Steel stocks like STLD, AKS, X, etc have started running again too.

STEEL 6-8

Notice how Steel broke above the 50sma, stalled and then took off higher? Then take a look at this...

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June 8 – Energy

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We've been discussing Oil and Energy among other things recently, and I wanted to mention what I am noticing in this sector lately.

WTIC - Over a month ago, I had a target of $51.60.  I felt that Oil may struggle at the $50 area and pull back before moving higher. A drop into a Daily Cycle Low would be the red path shown.  The Green path is possible too.

6-8 WTIC

We do see that struggle at the $50 area, but here is something to consider...

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