Archive for month: November, 2017

It comes as no surprise that markets can evolve and change over time, so when a change appears, it is best to listen.  It may or may not amount to anything in the long run, but we take note of any changes anyway.  That said,  I have seen 'changes' in the markets this week in a couple of areas, so we will listen, discuss, and prepare. As I mentioned, they may not amount to anything permanent, but we still need to listen and prepare, so let's discuss some changes in the weekend report.

SPX - No change here, but I wanted to point out that in the past, the SPX did visit the 50sma a couple of times before moving higher. These were areas of ICLs that did not sell off as deeply as the ones in the past  (see JULY & NOV 2016). So, will the markets just continue higher, or are we coming due for one soon?...

SPX - The drop continues as the SPX is seeking out the next DCL. The trend line is broken and the 10sma has been lost.  I actually thought that the 25th could have been a dcl, with the trend line break and close below the 10sma, so now I am simply watching for a swing low first, and then a close above the 10sma.  Either I drew the trend line wrong and the 25th was not a dcl, or this is a very L.T. daily cycle on day 15.  The divergence that I was pointing out over a week ago is playing out, so our 'caution' was warranted.

ALSO ...

Yeah, that little guy on the left is rather precious to it's dad there, but I'm talking about Precious Metals here.  Let's discuss what I mentioned in the weekend report about the coming sell off that I expect in Gold, Silver, and Miners, and discuss what we might see ...

I started with these 2 charts,  one of GOLD

And the other of GDX

But I also included this chart and it raised questions in the minds of some of our readers, so let me discuss this a bit further...

This weekend we'll discuss how the markets behaved last week, and at the end of the report, I want to also touch on daily cycle strength. Visuals may  help things to stick in our minds

SPX - When looking at past  ICLs ( deeper meaningful lows), we can see that the dips have not been as deep as they used to be. This is showing the markets strength over the past year. I now can draw a middle line as recent support. Please excuse the type on the chart 🙂  We do look due for a dip down sooner than later though, don't we?

SPX -  'No Change' from yesterdays report. Just keep riding it until a trailing stop takes you out. This can keep riding the upper line higher for a while too.