As hurricane Harvey ravages Texas, the market heads higher. My thoughts and prayers go out to those who were impacted by the storm and who are still reeling from its aftermath.
But the market isn’t reeling, it marched up smartly this week. We still have early, beginning evidence of the potential for a pullback, with price the deepest it has been in the Ichimoku Cloud since the Presidential Election, and bearish divergence in the price oscillator. But, the full evidence for the beginning of a correction is not in yet, and we have to wait and see.
There are sectors and individual trades (like CLMT and GILD which we are long on and STX which we are short) that are moving with unambiguous direction. This is always the case. The indexes are important and “a rising tide lifts all ships,” or at least most of them. But we can always find great trades, regardless of market conditions.
But, when the market moves dramatically, great trading opportunities present themselves and we are watching and waiting for that.
Gold has the clearest pattern of any major market right now. For a long time, I have been saying that if Gold could get above $1307, then we very likely have a Bullish trend beginning. That happened this last week and I am now long on an awesome Gold related trade and am already in profit.
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Oil is still in a downtrend, but it is a volatile trend with wild swings and is very hard to trade right now. This is a market that I choose to stay out of for now.
That’s it for this week. If anything new emerges, I will send an update. Otherwise, have a great, relaxing and fun Labor weekend and I will see you back next week.
Dean
I agree, Mr Jenkins. Wise and helpful analysis. Thank you. Have good holiday.
Juan, Thank you! I hope you have a great holiday as well.
Thanks Dean for another great recap.
Manny, you are welcome. Thanks for reading and for commenting.