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
The AI Stocks Megatrend Big Picture - 8th Mar 21
The Future of FINRA, Regulatory Defense and Bad Stockbrokers - 8th Mar 21
Almost Everyone Is Online: But Most of the Money Isn’t - 8th Mar 21
It is Time for Stock Market Investor Caution? - 8th Mar 21
Gold Predictive Modeling Suggests A New Rally Targeting $2300+, But When Will it Start? - 8th Mar 21
Gold: Crisis or Opportunity? - 8th Mar 21
US Bitter Cold Snap is a sign of the times - 8th Mar 21
How Scan Computers Builds Your Custom Built PC - Scan.co.uk Review (2) - 8th Mar 21
US Economy, GDP, Unemployment, Inflation Impact on House Prices Trend 2021 - 8th Mar 21
BACK TO SCHOOL - UK Coronavirus Lockdown Ending - Summer Holidays & Booming Economy Ahead - 8th Mar 21
So, Where Is Gold's Corrective Upswing? - 7th Mar 21
US Treasury Yields Rally May Trigger Stock Market Crazy Ivan Event - 7th Mar 21
The Great Reset Is Coming for the Currency - 7th Mar 21
Gold Continues Declines on Bond Yield Jitters - 7th Mar 21
The Case for Inflation - 7th Mar 21
Dow Short-term Stock Market Trend Analysis - 6th Mar 21
Intel Rocket Lake EXPLODE on Launch - 11th Gen CPU's RUN VERY HOT Bad Cinebench R20 Scores - 6th Mar 21
US & UK Head for Post Coronavirus Pandemic Lockdown Inflationary Economic BOOM - 6th Mar 21
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

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Feeling the Growing Heat and Tensions in Stocks?

Stock-Markets / Stock Market 2021 Feb 15, 2021 - 11:09 AM GMT

By: Submissions

Stock-Markets

Yesterday was a prelude, a little preview of things to come. We better get used to brief and shallow corrections again, after being lulled by the many preceding sessions. It appears that we‘re now going to get the consolidation period even as the overall S&P 500 metrics remain in a healthy territory.

This is the (print-and-spend-happy) world we live in, and we better not fixate on the premature bubble pop talk too closely. I have been stating repeatedly that things have to get really ridiculous first, and this doesn‘t qualify yet in my view. So, for all the tech bashers, we‘re going higher – like it or not.

Let‘s get right into the charts (all courtesy of www.stockcharts.com).


S&P 500 and Its Internals

A second day of hesitation, this time with a thrust to the downside. Comfortably repelled, but still. Is it just one of a kind, or more would follow over the coming sessions? I think this corrective span has a bit further to run in time really. Remember my yesterday‘s words though – the bears are just rocking the boat, that‘s all.

The caption describes nicely the mixed momentary situation in market breadth. I am looking especially at new highs new lows right now for whether they would be able to keep the relative high ground, or not, and what would accompany that. Now, it‘s amber light.

A supportive warning sign comes from the put/call ratio – we‘re getting a bit too complacent here again. Well worth watching.

Credit Markets

High yield corporate bonds (HYG ETF) wavered yesterday as well, yet bottom fishers appeared, pushing up the volume. The bond markets are clearly buying the dip here.

High yield corporate bonds to short-term Treasuries (HYG:SHY) ratio is still lining up closely with the S&P 500 index. Pulling in tandem, these aren‘t showing any momentary divergence.

When it comes to the high yield corporate bonds to all corporate bonds (PHB:$DJCB) ratio, the picture gets different, as the riskier end of the corporate bond spectrum isn‘t firing on all cylinders. That‘s part of the watchout story justification.

Technology, Value and Growth

Technology (XLK ETF) hadn‘t suffered a profound setback really yesterday. The volume wasn‘t there, and half of the intraday losses were recouped – the bears weren‘t serious, and as the caption says, be wary of tech bubble callers constantly warning about significant corrections with unclear timings. Both tech and S&P 500 are primed to go to much higher levels before things get really ridiculous. Also, remember that since September, the sector has been not at its strongest really.

Here comes the rotation between value and growth – given the current status, tech has been underperforming. It‘s the other sectors that are now catching up since the start of Feb. All in all, the chart doesn‘t scream imbalance – the accompanying S&P 500 advance has been relatively orderly.

Gold & Silver

Today‘s precious metals section will be shorter than usually, because the many bullish factors discussed throughout the week, remain in place. Just check out the metals & miners ratios, or yet another timely call of the dollar top.

Let‘s dive into the gold and silver price action that I tweeted about earlier today.

My open long position remains profitable, and the very short-term question remains what‘s next. Regardless of the upper knots, I don‘t see the short-term uptrend as exhausted, and you all know pretty well my medium- and long-term bullish case (stronger for silver than for gold in 2021 really).

Despite being quite hot in the short run, silver isn‘t willing to correct to any kind of reasonable target. I view the current indecision as part of an ongoing consolidation, and don‘t discount the bullish implications. The key takeaway however is, how much would have to happen to flip this (and gold‘s) chart bearish. I remain cautiously optimistic in the short run, and very optimistic as regards the medium- and long-term.

Summary

The stock market keeps holding gained ground, having defended yesterday‘s values largely. Given the signs of creeping deterioration, which is however not strong enough to break the bull‘s back, let alone jeopardize it, the short-term caution in the 3,900 vicinity is still warranted.

The gold and silver bulls are consolidating gains, and the bullish case for precious metals remains strong. Crucially, it‘s not about the dollar here, but about the sectoral internals, decoupling from rising Treasury yields, and holding firm against corporate ones. The new upleg is knocking on the door, and patience will be richly rewarded.

Thank you for having read today‘s free analysis, which is available in full at my homesite. There, you can subscribe to the free Monica‘s Insider Club, which features real-time trade calls and intraday updates for both Stock Trading Signals and Gold Trading Signals.

Thank you,

Monica Kingsley

Stock Trading Signals

Gold Trading Signals

www.monicakingsley.co
mk@monicakingsley.co

* * * * *

All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.


© 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