Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

The Dollar Nears it's Cyclical Ides of March

Stock-Markets / Financial Markets 2010 Mar 02, 2010 - 05:28 AM GMT

By: Bob_Clark

Stock-Markets Best Financial Markets Analysis ArticleThe indexes closed near the high of their monthly range. The S&P and the Nasdaq have been out performing the Dow.  
The transports were very strong Friday making new highs for the recent rally.  The long term interest rates fell hitting levels last see two months ago, as bond prices also closed near monthly highs.  You know a rising tide is lifting all boats when bonds rally, indicating a slowing economy and transports rally suggesting more products being moved and sold.  Clearly the market smells a change in money flow.


Even the dollar closed at it's highs, this must be hurting the Chinese exports to Europe etc. after they benefited so strongly from their yuan/dollar peg during the dollar weakness.  At a time when countries around the world want lower currency values so they can export their way out of debt, it is clear the upward revaluing of the dollar is an impediment.

The metals fought their way back up to close with small gains or losses for the month and near the top of their ranges as well.  The bullish sentiment is coming back into some of the gauges such as the investor's intelligence.
 
It goes to show, if you throw enough money at something, it will increase in value.  Correlation still rules.
 
I received an Email from a reader which made me realize that because I am skilled at calling the market and because these Emails are sent everyday the focus can narrow down somewhat. Exacerbating this, is the fact that we have been going sideways since October in many markets. The purpose of the advisory is to help people reduce risk and stay with the bigger trends.  So if you are a "buy and hold investor" keep in mind that when I make short term calls, that it may not be applicable to your investment planning and strategy.
 
US$...below I have inserted a chart of the dollar going back 20 years.  In it I have inserted  the 3 year cycle which you see is very consistent.  Notice that the next year plus time zone in the 3 year cycle has not been kind to the dollar over the last 20 years.  It is possible that the pattern has changed and  we have started a major up trend in the dollar that will cause the 3 year pattern to fail or give a late translation but we can't bet on it yet.  If the normal pattern is still in force then it has bullish ramifications for stocks and the metals over the next year. It is still too early to call a top in this rally but keep this chart in mind.92
 

SPY...notice we really have not done much in the last 4-5 months. It has been a traders market lately and buy and holders are getting frustrated.  I think this is a rest stop more than a turning point.  Remember we are approaching the one year anniversary of the march low and the stock market may give us a dip in the early March time frame to acknowledge it.  It would be nice to see the bullish sentiment back off one more time, it is the only thing making me nervous  right now.  If we are going to get a c leg down in this correction we need to do it soon.  I am trading both sides of the market as we try to get traction.
 


 
XIU...no chart...The xiu is is being buoyed by the commodities and the U.S. stock indexes.  It seems to have made a good low but it too could be influenced by the psychology of a  March low as well. 


 
 
GLD...if we are going to go up in gold we need to to see some convincing buying over the next week. A  wave C down in the stock indexes will put a damper on this rally but for now I am bullish because of the seasonals and the chart.  Buy dips as long as last weeks low is intact, and when I say buy the dips I am not recommending short term trades, sit tight and see what happens. We should see 117 but use a stop loss.


 

 


 
 SLV...remains in a bullish mode as well, what I said about gld applies here but because of the commercial positions as show in the latest Commitment of traders report (posted on my blog), I favor slv over gld.  Again, buy dips as long as last weeks low holds. Look for 18 if it does.
We have moved our stop up to 14.90 on original positions bought at 14.45 which is a long term trade
 
 

 


 
GDX...because markets are so correlated, gold stocks will be at risk of a March c wave in the general indexes, just as the metals are but seasonal factors remain positive for a while.  A failure now would call the bigger cycles in the metals into question.  The juniors I follow are lagging which is a worry.
 
 TLT...I put in a chart of the yield ($TYX) tonight instead of the bonds themselves to show how rates have dropped.  Rates need to keep falling to help our cause on the metals.  The markets seem to be smelling a fresh round of quantitative easing not yet visible. 
 
 
   
Like the dollar chart above we are fast approaching the time when the metals and their stocks turn and make seasonal yearly lows.  We must remain aware of the possibility that we fail in an attempt to breach recent highs and defend against a sell off with well placed stop loss protection.  The same logic applies to the markets in general.  The fed for some reason has been letting the M2 money supply shrink and if this continues it will be hard to press all markets higher.

This week should either see a high water mark for price or we pop.  Beware the ides of March or at least be aware of it.

Bob Clark is a professional trader with over twenty years experience, he also provides real time online trading instruction, publishes a daily email trading advisory and maintains a web blog at www.winningtradingtactics.blogspot.com  his email is linesbot@gmail.com.

© 2010 Copyright Bob Clark - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules