This week, earnings season kicks off with several big names like; JP Morgan, Wells Fargo, Citigroup and many others reporting earnings. In addition, Janet Yellen, Chair of the Federal Reserve will be speaking and is expected to answer questions about the “unwinding” of the Fed’s ~$4.5 Trillion balance sheet.

These factors may bring the market’s focus “Back to Basics,” or fundamentals and may be a reality check for the speculation that has dominated since the Presidential election.

It would be pure speculation to try and guess what Ms. Yellen will say, or how earnings will be or how the market will react. That is the beauty of technical analysis. We don’t have to guess, we can see the reality of the market’s reaction in front of our eyes and it is undisputable.

Currently technical analysis continues to show a high probability of at least a modest pullback. I’ve said that for two weeks now and so far, it continues to be true. I’m looking for the current pullback to take us down to about $19,500 on the Dow.

I’ve also been predicting (using technical analysis) a continued move up in Gold for over a month now and that trend has proven itself and is showing every sign of continuing.

Oil is untradeable right now. It continues to swing back and forth in a wide channel and I am not able to predict where it will go. If it does break out of the current channel, then we may have a new trend forming in whichever way it breaks.

That’s it for this week. This week promises to be exciting, more so than most pre-holiday weeks, and even though the market will only be trading 4 days (closed Friday for Easter weekend) we may see some price action and some great short-term trading opportunities.

Talk soon,

Dean Jenkins
Follow Me Trades LLC
Work: (360) 464-1083