Weekend Sept 22 2018
We are monitoring the bottoming process in metals. Gold bottomed August 16. Now commodity currencies of Canada and Australia appear to strengthen with the US Dollar falling. Copper firms, this is all part of the process.
Australian Dollar
The action the last two days looks to be the strongest since the reversal in January. The currencies of commodity based economies like Australia and Canada need to firm indicating a shift to commodity based inflation.
Copper
Notice the big move in copper. This metal is referred to as Dr. Copper given its economic importance. I recall reading an article in the WSJ on how weak copper was which reflected on the commodity exporters in emerging market countries. It of course is typical to see such articles when any market bottoms.
Gold The Low was August 16
Such price action is referred to as an exhaustion move, all the sellers capitulate, the few bulls step in and start buying at the bottom in price.
Mutual Fund
Most technical analysis books were written before the advent of personal computers. Now anyone with a discount broker account has access to programs like stockcharts. Most of the books need to be re written now that all are following the same 50 /200 day moving average charts. Notice here that price over shot the FIB 61.8% re tracement. No doubt there were sell stops at that level. I believe this Rydex fund bottomed just after the low in gold August 16.
EBAY
Ebay looks to be bottoming at the 50% re tracement level. Notice MACD at is bottoming, see blue arrow.
Rio Doce
Here is an example of why one needs to be accumulating now Once the train leaves the station it is hard to find a good buy point. This firm is in the iron ore business.
GSG
Here is the break out on GSG. It is till cheap.
GSG Correction Complete
GSG completed five waves up into 2008. Notice the shape of the final fifth wave was parabolic which is an ending pattern. Following that we have had a nine year correction which is ending now. The correction followed a textbook A up B and then a final C wave down. The first of the next five waves up is occurring now. The Central Banks of the World have engulfed the world with enough cash and borrowed money to fuel a 1970s type inflation all over again.
Hm the top in inflation was 1981, ad a FIB 34 years and you get 2015-2016. Notice that is exactly where wave C has ended in 2015 - 2016
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