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.
JUNE MINI GOLD
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (4/26) Gold made new lows on the move so a push to 1250-1 will easily come in. The only wild card is Korea and I suspect the bears will stay in control but it’s difficult to be in shorts given geo-political tensions. Cycle lows usually dominate into late June and we’re starting to think we should look at 1200 and it will take a lot for 1375 to happen and it is more likely in the summer.
OVERALL: The issue is of course war cycles this week but that does not always translate into higher gold prices. If you like gold, consider SGOL in the ETF sector.
CYCLES OVERVIEW: Recovering sideways to higher Wednesday; generally lower into Friday/Sunday.
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