July 7 2019 Weekend
Tom McClellan has year 2021 as a final high in stocks and for now that looks as good as any call. I am wondering if that is also a prediction of how the 2020 election turns out.
Stocks Transports
It appeared Transports and Small Caps were breaking out, now not so much. I suspect the usual summer doldrums have set in. MAs are converging which usually forecasts a change in direction, would that now be down?
Bonds
Ten Year Note
I must admit this vigorous bond rally caught me by surprise, sorry I missed that one! But it is over done and probably topping now. Which meas despite what Donald Trump thinks of his FED Chair, we are probably at the low i rates now. That makes perfect sense given the way the public has just poured into municipal bonds.
Dollar
The dollar chart looks a lot like the bond chart above. I am guessing the dollar holds here while gold pulls back.
Gold
The rectangles speak to over bought and time to correct back to 1340-1360 where price broke out. GDX and XAU look the same.
If October to now is Wave One, we are about to experience Wave Two pullback and then a spectacular Wave Three up. Stay tuned.
Silver
Silver got creamed Friday down 34 cents.
Energy
I cannot get enthused about energy here.
Nat Gas
Nat gas jumped up Friday after I wrote my column in the previous post Wednesday. A low volume day but impressive. A low could be in the making here.
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