Friday June 7th
Gold: I’m keeping an eye on some Gold stocks in case the USD keeps tumbling and if this then helps to boost Gold at all. I’m watching out for any trend line or triangle breaks and to see if price can get back above the Ichimoku Cloud.
Some stocks include:
RGLD: watching for a triangle break and to see if price can get back above the Cloud:
AUY: Yamana Gold:
SLW: Silver Wheaton:
ABX: Barrick Gold
Thursday June 6th
Fear of US Fed tapering has led to a pull back with stocks. This contagion has spread to the broader markets as well. I am keeping an eye on a number of levels to help determine if this pull back might evolve into a broader and deeper market reversal. So far, the daily support trend line on the S&P500 is holding and I don’t have any bearish signals from the Ichimoku charts. This may well change but, for now, I’m not seeing major warning signals. The S&P500 closed at new highs last month and I’d be expecting a test of the 1,600 level anyway. The markets have not pulled back to that level yet but they are close. The 1,600 level is close to the daily support trend line.NB: I am holding off taking any more directional trades, by way of bought Puts or Calls, for the moment until the next move becomes more clear and, I suspect, that won’t be until after NFP this Friday.
S&P500: daily support trend line in place and 1,600 not yet tested:
S&P500 Ichimoku: no bearish Tenkan/Kijun cross yet and price still above the Cloud:
S&P500 monthly: I would be expecting the 1,600 level to be tested here at a minimum:
Stocks: a number of stocks are now presenting with flag patterns that could help mark the next move as either a bearish pull back of bull flag type move. Trend line breaks might help with decisions here. The following stocks look to be setting up as ‘Bull Flags’ for the time being but this could well change:
NUE: This looks like a ‘Bull Flag’ but there is also a possible bullish ‘inverse Head and Shoulder’ pattern here too. The only problem with the inverse H&S though is that the neck line is sloping the wrong way so, it may make this pattern invalid:
ABX: this looks more like a ‘Bear Flag’ at the moment but, if the USD pulls back then this could take of again: