Thursday Dec 27, 2018
The two hour chart does look like this is the start of a relief rally after the Nov Dec decline.
PMO at bottom and On Balance Volume at top both appear to have bottomed and are turning up.
At the same time GLD has rallied and looks very toppy short term to me.
And the US Dollar strengthened so gold is pulling back a bit on that as well.
Silver took off yesterday, did anyone notice?
Silver has apparently finally made a bottom while gold rose to a new high.
I have illustrated the extreme number of new lows in the last few posts even suggesting a look at the new lows in the WSJ was a great indicator.
New highs versus new lows finally made a bottom Wednesday. Social Mood switched and the market rallied.
NYSE Advance Decline Daily
MACD and RSI have reached extremes to generate a low and probable reversal.
Among the economy ETFs I would suggest XLF Financials and XRT Retail, both have been beaten up.
And now that the FAANG stocks have been beaten down, how about SOCL global social Media ETF?
Bottom Line
I suspect we are still in bear markets for stocks and energy. The extreme over sold condition should generate a counter trend rally in equities and energy in to mid January. But frankly that is about all I am expecting. This same period should see silver finally holding above its 14-15 level so it can join gold in a rally for 2019. Wheaton WPM and Kirkland Lake KL both had intra day reversals at new high price area yesterday also suggesting some correction ahead in the mining stocks.
Energy I suspect is just bouncing off a lower level. Don't get too optimistic that the worst is over for energy.
The big rally of 1,000 points got the 30 minute charts over bought, DJIA down 400 in pre market this Thursday morning so let things cool a bit and watch 30 minute and hour charts for best entry.
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