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need more like you that think beyooond the XJO or similar. will...

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Trees

43,714 Posts.

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22/05/18

09:13

Post #: 33245039
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Originally posted by paddington bear ↑

Wall Street might be strong this morning but from where I am sitting looking just at my charts, I don’t think that is the most important development. Instead it looks like …. METALS. Gold had a bit of a dive earlier in the night but came back nicely and by the close it was virtually back to its previous close. But it was everything else in this sector that took my eye. Silver had a really good day (gold/silver ratio improved again) and so did platinum and palladium. On the LME I noticed only nickel was a fraction weaker but the rest were all up with copper putting in a good show. But the same wave was evident in the currencies with both the Canadian dollar and the Australian dollar both stronger despite the UJS dollar being up against the other crosses. Don’t forget that I have mentioned a few times that I think the Australian dollar could be forming a little head and shoulders bottom and that certainly looks as though it could be the case after the latest session. Then looking at the same wave on Wall Street, of the nine sectors, the best rise was XLI – Industrials.

Hard to ignore a wave that goes through all markets like this. Definitely important and could I suggest, just a bit exciting.

Going back to Wall Street, I mentioned yesterday that it looked like the SPX could be forming a little bullish flag. It has broken topside out of that pattern but even though it finished so nicely up, it didn’t have the support of their Banks and Financials which I would have preferred to see. That puts a bit of a dampener on any excitement.

Can’t pass without mentioning the FTSE. New all time high. Mind you it is only the top 100 stocks so they are all benefiting from the weakness in the pound over recent months and not a true reflection of the UK economy. But this index is caught up into the most unbelieveably tight upslanting wedge and when it breaks – it is going to break with some style!!

Our market continued with its sloppy trading yesterday with the banks still acting as a deterrent. Best just to ignore that section and look elsewhere because as I have shown many times, if we dig down to indices such as XMD – Midcaps – then the performance has been great.

The way our Gold Index has behaved has just been amazing. It got overbought so I was looking for a correction. It came back absolutely perfectly to touch a line I had drawn on my chart and yesterday bounced very strongly. When something behaves as perfectly as this, it must have meaning. But what amazes me is how does the market know where these lines are. Still the important thing is that we have the opportunity to benefit from all this and make money.

I’m rather hoping that with what I referred to as a “wave” above, might make itself felt here as well. Should be an interesting day. It would also be good if I have many opportunities to refer to this “wave” over coming days – could make trading a lot more exciting!!!

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need more like you that think beyooond the XJO or similar.

will check out the XMD a little more from now on

thanks for keeping the link going for those pesky DTers world

thanks
Trees

XSO Value at posting: 2,838.4
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