FOR THURSDAY: (7/14) Quick 2-day pullback on S & P should be over quickly here and the push higher should continue into August 1 so the party isn’t over. We’re still waiting for retracements from Tuesday’s wild action and then can get positions in play for next week with most swings suggesting trending action between July 18-27 next.
We’re wanting to short gold and silver on retracements.
FOR WEDNESDAY: (7/13) The potential impact of the new PM in the UK caught us napping on Tuesday. Yes, now suddenly the UK is fixed and there are no potential problems for Europe, or so the market reacted today. Sometimes these news events are followed by the trend as usual, and that may again be the case with the recovery in the dollar late.
We’ll give our original cycles the benefit of the doubt for a few days and see what happens but T-notes issued a breakdown signal and so did gold so the other markets might follow so be cautious.
FOR TUESDAY: (7/12) Cycles may turn more volatile on Tuesday with Tuesday/Wednesday having the best chance for lower stocks–and if we don’t get anything or much, we’ll know how strong this market is and we shouldn’t fight the trend or the primary 6-week cycle higher.
Treasury auction not going well at the moment and that may keep us from nibbling on longs. We do like long gold the rest of the week and short crude and long dollars the rest of the week.
FOR MONDAY: (7/11) Hard to put out orders for Sunday night given that world weekend events are still rather crazy so we’re happy to go home flat and consider new positions on Monday. If we get a pullback on the dollar Sunday, we’ll want to buy and we still like stocks for at least one more day but risk/reward may be gone by Monday morning. Crude looks lower next week and Friday’s bounce was rather wobbly.
