Category: Financial Markets Update

FOR FRIDAY: (9/8) Buy the rumor, sell the fact. Thinking that if stocks sell off into the weekend and gold is also higher and the dollar lower, then whatever happens over the weekend will have nowhere to go and the markets will rebound. Cycles turn a bit more depressing and pessimistic the next few days and that may lead to more major selling of stocks. Open to panic selling coming the next few days unless the Plunge Protection team can absorb it.Continue reading

FOR THURSDAY: (9/7) Buy the rumor, sell the fact. Thinking that if stocks sell off into the weekend and also gold is higher and the dollar lower then whatever happens over the weekend will have nowhere to go and the markets will rebound. Cycles turn a bit more depressing and pessimistic the next few days and that may lead to more major selling of stocks. Weird Wally Thursday now as we move to Stock index rollover. Many traders rollover on Friday now but we’ll go with Thursday as we’re interested in a 2-day short for stocks at least. Open to panic selling coming the next few days unless the Plunge Protection team can absorb it.Continue reading

FOR WEDNESDAY: (9/6) Markets can be illogical and that could always happen on Wednesday. Too much background noise with a Category 5 hurricane heading for Florida –and hopefully swerving out to sea or going other places. Still, it’s rather unnerving and at the same time N. Korea is moving missiles around getting ready for another launch by Sept. 9. Still, markets are illogical with wildfires in Oregon and flooding in Houston are forgotten when you can push your stock portfolio higher. We did have contract rollover coming also.Continue reading

FOR TUESDAY: (9/5) Not sure another hurricane heading for the US will be considered good for the economy but people feel all this money goes out of insurance funds and into buying replacement goods and it’s sometimes a boost for the economy. North Korea tensions are still there and we have to see how much these markets react when cash trading happens. Three day weekends are hard to trade but generally if the market is down into a 3-day weekend, it often will bounce out of there. If gold and silver hit key numbers overnight, they will be a sale for a week and SP should be a buy on dips for at least a few days. Hurricane Irma is the new wild card and brushing Puerto Rico isn’t going to be good for that bankrupt country and heading to Florida is no picnic.Continue reading

FOR FRIDAY: (9/1) We see higher dollars and lower gold for Friday and expect higher stocks but the market may go for profit-taking before the long weekend. NQ cycles look the most volatile so tread carefully.Continue reading

FOR THURSDAY: (8/31) The big question is whether pre-holiday position squaring and month-end fund profit-taking and contract rollover will overwhelm upper pattern completion, which might take until Monday/Tuesday to complete. ADP showed a gain of 276,000 private sector jobs. Is the trade assuming a strong number for employment for Friday, and GDP was the best in 3 years. We hate the buildup before 3-day weekends. Won’t take much to push SP into a buy signal and NQ has already gone there.Continue reading

FOR WEDNESDAY: (8/30) Sucker punch day on Tuesday. To us, they all look like 4th waves but we’re concerned about thinning conditions before the holidays as well as month-end fund profit-taking and contract rollovers for notes and silver. Have to take profits early because of all the above but if we hold into Monday/Tuesday, upper targets should come in.Continue reading

FOR TUESDAY: (8/29) Asia is all upset overnight with the N. Korean missiles but if the market gets trashed overnight, it may have nowhere to go in the morning but fill gaps. Hard to chase at night unless you stay up all night. We do have dollar weakness and stock weakness all week so we can sell bounces into gaps, and gold still has 4-5 more days to the upside.Continue reading

FOR MONDAY: (8/25) Nothing dramatic at Jackson Hole except a continued drubbing for the dollar that should continue into Labor Day. Stocks may take a break next week and be sideways to lower. Gold and silver look higher for another week and oil is in trouble next week. Mondays have been doggy in the summer and overdone conditions from Friday may balance out or will the trade be struck by the horror of Hurricane Harvey? Send prayers and donations to those in need going into the weekend.Continue reading

FOR FRIDAY: (8/25) Jackson Hole doesn’t begin until tonight and Drahgi and Yellen aren’t speaking until Friday so the market is still on hold unless they are positioning big before those speeches. Not sure how big a deal Hurricane Harvey is but crude was not worried on Thursday. We have a bias toward lower dollars and higher gold and higher stocks on Friday but we’ve seen so many Yellen and Draghi surprises, it’s difficult to be overextended.Continue reading