Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 23rd of August.
The question on everyone's thoughts and minds has to be, is the stealth rally over in stocks and has the bull market in gold just begun?
Back on Tuesday, we warned that Tuesdays tend to be reversals days. We also did a recent poll asking if you thought the market was going to close lower or higher for the week. Results were remarkably close, almost a 50-50 split, so there's an equal number of people who are bullish and others who are still bearish on this market.
Overall the equity markets are lower for the week. Should we close at current levels or lower on Friday, it will mark the first time in six weeks that we've seen profit-taking coming into the market on a little more volume. Volume for the most part in this stealth rally has been low, very low, which is sometimes a clue that stocks are moving higher on little to no fresh buying.
We expect the S&P 500 to move back to the midpoint of its Donchian Trading Channel. That would bring the market down to the $1,390 to $1,380 level. Let's see how the markets close out the week tomorrow.
It is official, all of our Trade Triangles are positive on Gold today. Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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If 1330.68 is not surpassed I continue to believe the major trend is down.
Stocks except gold and silver minig stocks are ready going south.Martin
Ever since the silver rush of 2011 I had an assortment of silver stock some of which I was recently stuck with as the market declined - along with much else. I still have SVM, supposedly an ostensibly Canadian but really a Chinese stock of some alleged worth in AG, Pb, Au, and AG. People have made allegations that the stock was being criminally misrepresented. After forensic exams clearing it of misrepresentation it is still in court on libel issues.
HL, Canadian, had a mine collapse which caused bad trouble market-wise plus the recent decline in general Ag values. It is recovering slowly with other Ag stocks, GPL was a nice cheapie with a decent future fir what it is. It is slowly rising in price and I may sell off when it gets past my purchase price and hit some other Ag stock.
I had NSU a couple times. Small stock but it does pay a dividend. However it is in darkest Africa and there's no telling what will happen to operations unless someone with firepower and mining management abilities keeps it going in the worst of circumstances.
So far my junk bonds are doing OK and ditto for the Ag based stocks. AUY, PHYS, and IAU are doing better again and are worth a look . If you have a bit of physical silver there is some comfort in seeing the price rise.
Silver is about to leave the launch pad for a great steep climb!
I have a hard time believing the stock rally is anywhere near over. Too much bearishness out there lately; even in mainstream media. All they talk about us deflation. When everyone screams inflation then its timeto sell. For now we climb the wall of worry