Weekend April 28, 2019
Several interesting events occurred as this past week ended.
US stock indexes made new highs.
World stock indexes did not.
Crude Oil suffered a big reversal amid lower earnings from oil companies, and no lack of supply. See our weekly newspaper column .
The Dollar moved to a new high. But gold and the XAU seem to be finding support and rallied near $20.
XAU
The XAU looks to have bottomed around the 71 level. THis suggests a rally into the end of May.
XAU Two Hour
The MAs turn up on the two hour chart confirmed by the PMO at bottom. And both gold and the US Dollar turned up at the same time. Is gold re emerging as a currency?
There are several gold funds like ASA, PHYS, USERX that could be entered at this level. JNUG is a 3x bet on GDXJ.
Crude Oil Weekly
This appears to be an outside weekly reversal to the down side. 66+ has been the upside resistance. The market briefly topped taht level Monday only to give that and more back by the end of the week. Recall that oil and stocks have moved together. Crude oil may be topping prior to the seasonal high in stocks due May 9.
% Stocks above 150 Day MA
Here is the reverse of December 24. This makes a double top at the current level of stock prices.
Bottom Line
There is likely a top forming in crude oil followed by a top in US stock indexes. World indexes are trailing the US.
The US Dollar remains strong. Gold is bottoming along with gold mining funds. Silver like gold is completing a fourth wave down. It needs a close over 15.20 to turn its trend up.
Social Mood
Drudgereport has a link to a story on the 36 public executions held in Saudi Arabia this past week. Teen boys aged 16 and 17 were beheaded. King Salman has a ways to go convincing the world of the 'new' Saudi Arabia.
With twenty Democrat candidates declared for President, it is a crowded field. And the only issue seems to be oust Donald Trump. Pelosi is denying it is the Dem Socialist Party but Bernie and AOC get more followers and publicity.
Herman Cain and Oliver North were both out this week, Herman as a FED candidate and North as the President of NRA. North, with only on term as NRA President took on multi decade Wayne La Pierre showing a disregard for going against a long time entrenched figure. It seemed foolish to me for North to become embroiled in such a controversial organization. And sure enough he showed a lack of caution reflecting how he came to be known during Iran Contra. Ollie you should have stayed a at Fox.
England can't figure out Brexit, Macron has half the popularity of Trump, Kim is visiting Putin, and Melania is on the couch all by herself. Perhaps this photo sums up the current Social Mood.
All alone on her 49th Birthday.
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