Blogs

October 9, 2007 marked the top in the market.  Taking that high and counting the days to the next low and then taking a 38.2 of those days and adding the days out to the future have found important turns days in the market plus or minus two days.  We have marked on the chart those turn dates.  From the October 2007 high to the March 2009 low took 355 days.  Taking 38.2% of 3

Gold is back in the spot light as it flirts with the $1000 per ounce level. This closely watched commodity looks as thought it will rocket higher because of the multiple trading time frames indicating breakouts.

I hope everyone enjoyed the weekend!

Gold is once again the hot commodity, as the price rises to the $1000 per ounce level. This $1000 - $1033 is a technical pivot point for gold. One of two things is going to take place in the coming weeks.

Big divergences between Baltic Dry Index and SPX have lead to intermediate term trend changes.  The current divergence is a negative divergence where the SPX made higher highs and Baltic Dry index made lower highs and suggests that the SPX is heading to an intermediate term decline.

Over the past couple of months, gold and silver have been uneventful. In this report I have posted weekly charts to show the larger trend of gold and silver. Also I have provided small charts of the US and Canadian gold stock funds GDX and XGD.

The Precious Metals & Energy Report

Precious metals like gold and silver appear to be forming a bullish pennant formation, which generally leads to higher prices. Currently the US dollar is hovering around a support level, which is the 76- 79 range. Only time will tell if the US$ breaks down sending gold to new highs in the coming months.

Below is the daily SPY.  Monday’s big down gap day broke below the previous two week lows on increased volume and implies a valid break to the downside.   Normally on these valid breaks to the downside the market will attempt to rally back and attempt to fill the gap.  The gap formed between 101 to 99 on the SPY.  Sometimes the market just inters the gap and sometime

Commodities took a breather last week, while stocks slowly continued their march higher. This week (Monday) commodities moved lower with profit taking and fears of a much larger precious metals and broad market sell off being anticipated in the near future. While it sure looks like we are ready for a pullback in entire market we just may not get one for some time.

This week commodities have been moving higher which is exciting. Gold, silver, oil and natural gas all have bullish looking daily and intraday price action. Monday we saw commodities spike higher and profit taking Tuesday and Wednesday. I am expecting a sharp move here and it could be in either direction, so this report is to keep you on your toes.

The Spy appears to be drawing a bearish “Broadening Top” that may be close to completing.   The QQQQ is also drawing a bearish pattern and this pattern appears to be drawing a “Three Drives to Top” pattern.  This pattern has a deep retracement off of second top that retraces at least

Normally the VIX bottoms when SPY tops (see blue arrows).  The VIX bottomed on 7/24 and since then the SPY was worked higher.  The MACD and Full Stochastics on the VIX both have gave buy signals and implies the VIX Should work higher wh

Who would have thought that the information age would be so confusing?  Given the same set of conditions, man has this tendency to find different interpretations of the same data.