For the time being the stock and oil cycles are tethered together. Oil is bumping up against the 200 DMA. If it can break through and continue rising for another 5-10 days then the stock market cycle should continue advancing as well. Once oil reaches a short term top so will stocks, and both will drop down into a daily cycle low. That will be the next great buying opportunity for both assets as they both still have many weeks to rally before their intermediate cycles top.
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Oil seems to be repeating last years trend double bottoming in Jan and March, with a breakout lasting to late April(2015) then plateauing, before tanking in June.
5th day in a row up with the US dollar .
Lets see if the bottom is in for a while,
and if that effects gold & oil .
I was wondering if the dollar was forming a bear flag but with 4 days in a row up it is starting to look like the dollar has likely completed its intermediate cycle low. I said Doc was going to get this one wrong when he called for several more weeks of lower price.
Chartists always miss these intermediate bottoms because the charts always point lower right before the turn.
Charts and indicators aren’t the tools to use at cycle bottoms. They lie to you, so to speak at these turning points.
today I’ll add to my short gold position and potentially also to my long T-bonds’ one.
Gary, your thoughts on BioMedical? Looks to be starting move higher!
I’m long biotech. I think it will lead the market into the bubble phase
Sorry Gary. The bios are not done correcting. This became obvious to me today.
Glad I sticked to my analysis that Gold is seasonally weak in March and it has a date with MAs and Fib retracements. Did not get tempted by silvers rally above $16. Else would have lost my precious profits.
Continued to scale out of my index longs though. The last bit will be out if NDX reaches 4500 ish. Did not short Gold though because I cut my losses 3x on my small short Gold. So decided to wait patiently for my $1180 to get hit before buying. In fact, it could even drop to $1150.
Bottom line, kudos to those who have shorted gold successfully. It is really so clear that it has some fib work to do.
Gary kept blowing Biotech. Ok, I shall allocate some capital when IBB closes above $275. And add more when it works. Gary is often so right recently. Ride his form.
Everything going down but the dollar.