Gold Exhausted, Likely to Bounce Slightly

Gold is bearish and is in a long-term downtrend. However, it’s arrived at strong support, exhausted, very oversold giving a perfect opportunity for a rest and small bounce. Long-term gold is trending down Gold after peaking in late 2013 has since been tending down. In the weekly chart above it’s formed a large falling wedge, […]

FTSE bounces up, still trending down

Recap In the previous post “UK’s hesitant FTSE” twelve days ago I noted how the FTSE was hesitating and suggested it was likely to dip on profit taking to around 6,200-6,300 (6,100 if that level was broken). The dip saw some heavier selling than anticipated, but there was indeed a clear bounce off 6,100 support on Monday. Price […]

Long Term Indicators Looking Bad. New Downtrend Forming?

Stocks, though volatile, are actually quite accurate indicators for the economy. Money talks. Short term trends are obviously more volatile, so long-term trends and indicators are the most reliable for giving us a good idea for where the economy is generally heading. So, what are they saying? Doesn’t look good. US stocks – walking off a cliff? […]

November plunge or buy the dip?

Re-cap In early November I wrote that US stocks would likely see a drop in the next 2 days to 2 weeks  on profit taking. Stocks were in overbought territory and the earnings season which the rally had been feeding off would be finishing soon. Technical indicators said momentum was slowing and pointing a dip was ahead. […]

Junk Bonds Breaking Down? Not good.

Junk bonds look like they are breaking down which is not good. On this chart you can see price fell out of the channel that has formed since the end of 2009. It made an attempt to climb back, but failed. This signals more downward movement. If so then this means investors are losing their […]

DAX Waiting For Friday

Dax is looking like it’s topped out and getting ready for a move down on profit taking. ECB meeting puts support under stock markets as they salivate over the thought of more QE. Monday saw profit taking that was catalysed by China’s bad economic data over the weekend. Europe who’s economic outlook is dismal has conveniently […]

FTSE Takes Profits

In the last post I mentioned stocks were due a rest and we are likely to see a small dip to around 6,200-6,300. The FTSE did indeed dip and is currently resting at 6297. US spectacular jobs report and China’s dismal trade figures The catalyst for this came from overseas. Last week the strong US […]

UK’s hesitant FTSE

There are a number of technical signs that indicate the FTSE may be about to head down. Have a quick look at the weekly chart below. Bouncing off the ceiling Unlike US stocks, which have staged a very strong rally, UK stocks have been more hesitant. Following the August plunge the FTSE staged a brief […]

Markets pause and wait for US jobs report

Markets catch their breath In my previous post I mentioned that this rally could do with a breather. We’ve had a more or less strong rally with very little pause. Normally a strong move up is followed by a period of retracement as price works off oversold conditions. Oversold All the big three indices (S&P500, […]

Bullish, but tired

Slapped by China, Comforted by Europe I had expected a pullback on Monday morning after China reported its manufacturing sector is still contracting, indeed stocks were down in Asia and US futures were down nearly half a percent and it was looking like price was going to breakout down from its rising wedge. The bearish […]