Category: Financial Markets Update

FOR WEDNESDAY: (4/26) Not much change to last night’s general comments. No key events pending except North Korea and Trump’s tax announcement but that’s in the market already and probably will be sold. Lots of Central Bank meetings by Thursday with Bank of Japan and the ECB. We think that the cycles favor a budget deficit resolution by late Friday night, which just may mean kicking the can down the road but the market is fine with that as long as stocks go higher. Dollar needs to go to 9800 and stocks had enough of a breakdown as seen in NQ that our projection for NQ highs in May is still on target.Continue reading

FOR TUESDAY: (4/25) Lots of Central Bank meetings by Thursday with Bank of Japan and the ECB. We think that the cycles favor a budget deficit resolution by late Friday night, which just may mean kicking the can down the road but the market is fine with that as long as stocks go higher. Dollar needs to go to 9800 and stocks had enough of a breakdown as seen in NQ that our projection for NQ highs in May is still on target.Continue reading

FOR MONDAY: (4/24) Stocks ended softer ahead of the weekend and will turn their attention to next week’s budget talks and government funding deadline on Friday. Cycles still point towards a mild recovery in stocks and continued rebound in the dollar. Gold should be backing off after Friday’s surprise recovery. Crude may be overdone on the downside and we may adjust our cover target for our short position.Continue reading

FOR FRIDAY: (4/21) We’re still a bit in paralysis mode and expecting that people will want to be flat going into the weekend but many are thinking that any North Korean nuclear test won’t happen until early May and ships heading for that area may take a week to get there. We ran cycles into Sunday/Monday and the dollar looks higher now and gold and silver lower and crude lower so if we trade technically and with cycles, we have to go that way.Continue reading

FOR THURSDAY: (4/20) We ran cycles into Sunday/Monday and the dollar looks higher now and gold and silver lower and crude lower. Stocks should recover from a lower open on Thursday and should be a day-trade long. Still, world aggression and violence cycles are strong into Tuesday and we remain concerned about trigger-happy generals reacting to North Korea, which may not be ready for a nuclear test until May based on some reports. Hard to assume that gold will go up and the dollar lower if violence breaks out. With our new cycle work, we’ll go with those bets rather than speculation about the world.Continue reading

FOR WEDNESDAY: (4/19) Whippy action on Tuesday with the UK call for June 8 elections causing a lot of unwindings in currency positions, as short pounds were suddenly not the place to be. Whippy action likely to continue for a week based on cycles, more saber-rattling and war cycles with North Korea and the “forgotten” debt ceiling crisis that has a deadline for April 28. Will be hard to put in too many orders overnight but we have to on some level.Continue reading

FOR TUESDAY: (4/18) While the markets went to the edges in terms of bounce and retracement, the writing on the wall suggests higher dollars into Thursday and it won’t take much to pull stocks up. Basically the market is rebalancing last week’s conditions and waiting on news. Our sense is that cycles into Friday-Tuesday of next week support battle conditions and guns will go off. We don’t see nuclear war but cycles are hitting the US and Trump very exactly that he will be aggressive. I suspect even though we want to dump our positions from last week, we may have to get back into them on Thursday.Continue reading

FOR MONDAY: (4/17) Markets are closed on Friday but economic cycles continue to come out. Fear cycles are still strong into Tuesday so we suspect that whatever happens over the weekend, it won’t be roses and lollypops. Sometimes extreme moves on Sunday night have no place to go by early Monday and if we get huge gaps on Sunday, you have to expect that is possible. Still, the market may be in trouble into Tuesday and maybe much of next week. We’ll put out an update on Sunday night if geo-political bombings and war cycles create too much potential energy but hopefully we can enjoy our holiday weekend and you can also. Three-day weekends are difficult to trade under normal circumstances so be careful out there.Continue reading

FOR THURSDAY: (4/13) World political and tension cycles are still strong into Thursday and saber-rattling is escalating with China on the border and the North Korean President having a press conference at 6:20 am to demonstrate something. Who wants to be long dollars in this scenario? We looked at next week and gold continues to look higher and the dollar low and next week cycle lows for crude dominate and stocks should mostly be lower much of the week. We have to assume that the trends will continue and nothing will be resolved over the long holiday weekend.Continue reading

FOR WEDNESDAY: (4/12) World political and tension cycles are still strong into Wednesday and Wednesday night but may lift late in the week. We looked at cycles for North Korea and its President and he could easily not survive world pressures from China and the US this summer but there’s a lot of time until then. Usually these situations get worse before they get better so expect that the trade will stay on edge on Wednesday. Anxiety cycles and military reckless cycles continue into April 23 so if anything, things will heat up.Continue reading