Category: Financial Markets Update

FOR WEDNESDAY: (5/10) We have a bias toward lower stocks on Wednesday but we don’t think the move higher will be over until next week. The dollar looks higher all week and that doesn’t jive with a 2-day bounce for gold. Luckily the news front is relatively clear compared to past weeks.Continue reading

FOR TUESDAY: (5/9) Have to get into long dollars and short Euros tonight as we see a trend up on the dollar for about two weeks. Europe is still a mess. T-note patterns don’t look as great as we had thought on Friday so be defensive. S & P could squeak out a slight new high and NQ is close to doing so already.Continue reading

FOR MONDAY: (5/8) Since that Macron looks like a done deal with a 20% lead, the Euro should take off and push the dollar down and stocks may squeak higher. The issue is how long will it last and when will sell the fact hit? We are close to pattern completion on the dollar at 9810 but will it go more with gold projecting higher prices into Thursday? S & P and NQ at new highs can’t be ignored with pullbacks this week now minor. Crude looks lower all week but how do you sell a 3.00 rally off of the lows? More chills and spills this week.Continue reading

OR FRIDAY: (5/5) We found a larger cycle that’s creating skittishness in traders into the weekend and hopes for rallies that we had seen on many markets into Friday seem like dreams. Thinking we will get end of the week short-covering for crude and the dollar and metals before the French election and metals look higher next week and stocks lower. Always hard to play these political events.Continue reading

FOR THURSDAY: (5/4) We found a larger cycle that’s creating skittishness in traders into the weekend and hopes for rallies that we had seen on many markets into Friday seem like dreams. Many markets are oversold and there were key turns due at the FOMC announcement and that has us wondering. Let’s see how the morning looks.Continue reading

FOR WEDNESDAY: (5/3) Trade awaiting FOMC announcement on Wednesday. With the Fed unlikely to hike again this time, if we get a somewhat hawkish tone today, or even praises on the labor condition, rest assure market will blow it out of proportion and push USD higher. Given the recent GDP print for 1st quarter, it seems hard to expect a hawkish tone or rate hike this meeting. Cycles are volatile for Wednesday and something unexpected seems likely based on cycles but exactly how to trade that isn’t clear. Our cycles into the end of the week focus on weaker dollars and stronger gold and higher stocks and higher bonds and higher crude and that is what we will focus on.Continue reading

FOR TUESDAY: (5/2) Trade waiting for FOMC on Wednesday but is already buying the Congressional confirmation of a budgetary settlement until Oct. 1st. There’s still too much going on with North Korea and saber-rattling but cycles for stocks are still positive until the end of the month so “what me worry.” Could see the buy in October and sell in May people taking profits at 2400 on the S & P comes in again.Continue reading

FOR MONDAY: (5/1) These news-related weekends are always precarious and we’re unable to do much about them unless we put out updates and new trades before the Sunday open. We’re assuming that the budget extension will pass for another week but that means another exciting weekend next week. We’re more concerned about Puerto Rico but think North Korea is more a problem in June and July. We can put in orders to buy and sell key numbers as outlined in our Friday morning service.Continue reading

FOR FRIDAY: (4/28) Markets are in holding pattern waiting on budget. Late wranglings are politics as usual with fights over Obamacare and Puerto Rico which should go bankrupt next week. We may not get a resolution until Friday night and the markets could be in limbo and then explode. Feeling like a secondary high for stocks on Friday and then weakness next week. We did look at cycles for next week and the dollar should top out on Monday and be lower next week and vice-versa for gold and silver. T-notes look higher also next week.Continue reading

FOR THURSDAY: (4/27) Bank of Japan overnight and then ECB and Korea is still making background noise. The problem is that there‘s usually a reason not to trade every day. Sometimes you have to take a brave stand based on pattern. ECB days are filled with surprises more than most so stay alert. Stocks still seem the safest buy on dips based on NQ patterns and breakouts there to new highs which will bring the rest of the market higher.Continue reading