Weekend Oct 22, 2017
Stocks penetrated the upper channel this past week to set new highs. This mimics the action of some indexes in 2007 with a summer high and then another high that October. Also recall the parabolic rise of oil and then violent reversal in 2008.
We are ten years out from Fall 2007 when the market topped. As shown above stocks have reached over the top of
the upward channel that has contained price thus far. t would take a weekly close below the 50 week MA to suggest a correction had begun.
Apple APPL
Tom McClellan noted this non confirmation by Apple, it should be leading. Instead it recorded an air pocket drop the last two days of this week.
Interest Rates are Increasing
TBF moves opposite bond prices. This may be the safest investment around at the moment.
Energy Service XES
XES has corrected, note RSI at top. To re instate the bull theory, XES needs to hold right here at 50 and 67 bar MAs.
USO Oil Fund
The MAs are finally beginning to turn up. This suggests a rally could begin this week lasing into December.
Hearing Oil
Hearing oil looks great bouncing off its MAs, this re enforces the rally idea.
Unleaded Gasoline
Unleaded Gasoline
The big jump Friday look like the similar jump at the end of August. PMO at bottom is very positive.
Hecla
We expect a low in gold silver and miners in December. Here a break of 4.5 would set up a deeper fall to perhaps 3.
CDE is in the same position, a fall under 7 would apparently take the price lower. Let's hope so for a great December entry.Dollar strength is also weighing on this sector.
Stocks show no sign of a top yet. Interest rates are rising.Gold and silver are correcting. Energy should be setting up for a rally.
Social Mood
The great comedians, like Bob Hope and Johnny Carson, avoided partisan politics. Sure Hope poked fun at all Presidents, who all laughed along with him. He was welcomed by both parties. Carson regularly drew 9 million on his Tonight Show. Today is totally different writes Rich Lowry.
Once a down-the-middle comedic voice who co-hosted the unapologetically vulgar The Man Show on Comedy Central, Kimmel uttered what could be the epigraph for our times, saying of viewers who strongly disagree with his political views, “I probably won’t want to have a conversation with them anyway.”
Read more at: http://www.nationalreview.com/corner/452773/johnny-carson-jimmy-kimmel
This is typical of he and Colbert not to mention Kathy Griffith with her severed head of Trump. While Kimmel may write off Republicans and Trump Supporters (different people indeed) one would think the advertisers would welcome sales to any party, apparently not. Recall the recent attack on advertisers on Sean Hannity. USAA had to recant its non support after protests from its military policy holders.
Add to that the charge of Trump abusing the Gold Star Widow and we have negative mod all around. It has had zero effect on stock prices thus far, and that is world wide. But the negativism does not square with a bull market mentality.
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