Moral Compass - Friday, page-2

What an interesting night we ended up with. Where to start...my geniuses are back to 50% which is as low as it got in February this year – the last low in the market. Yes, they can get a lot lower – in October 2011 they were clever enough to be net short right at the bottom! Bear in mind that they have gone from over 80% invested back to 50% in just a matter of days – that is some serious selling. To me that suggests that the market has handled this level of selling pretty well.

The number of stocks above their 50 day moving average is at the lowest level since November 2012. Yes that figure can go lower as well but it is getting into oversold.

And of course the other factor (close your eyes everyone who thinks anyone who is interested in Astro signals is completely mad) we have the full moon coming up this weekend at the closest all year. To me that suggests we should get a low in the market a couple of days either side of that event. Just to add, I treat my astro studies as if they planets and the moon were stocks which is very different to how most people combine astro with the stock market.

Gold rallied again but silver was left negative although only fractionally. Interestingly gold left a gap when it broke down a month or so ago and I must wonder if that is what the gold market is looking for. But at the same time, silver has now come back to the support around twenty bucks and the ratio of gold/silver has pulled right back to where it broke out some months ago. A bit confusing at the moment so I am going to give it a bit more time.

Copper held. It is back to support as well but I really do need to see it pull out of this dive.

I think the picture will be a lot clearer when we see how our Index handles everything today – particularly a Friday with lots to digest.