I have watched gold chart and found interesting that on long term chart one can find both types of trading idea:
a) bullish: represented by inverse head and shoulders pattern
b) bearish: represented by double (tripple) top chart pattern
What will prevail? Right now it is looking technically more bullish but based on my global macro themes I am not very bullish on gold fundamentally long term.
Yo can see declining volume since beginning of May on US stock markets. There are not real buyers on US stock markets since then.
I think that all move from beginning of May (near 930 high) is in risk. If we will not see some upmove with strong volume, then stock market can easily drop below 900 level – 800 to 820 as target.
I have noticed possible double top on EURUSD chart. It can be traded by currency ETF as short near resistance. This trade can offer very good risk reward .
Broad market index SP500 is trading in very tight range in last few days. And also volume totally collapsed.
SPX is pushed down by resistance level near 940 – 950 level . But there is also uptrend line supporting price in rise. Also 200SMA and 20MA are near current price level. I expect that we will see stronger move soon, up or down. Till breakout or breakdown I do not want to make a lot of aggressive trades.
My swing trading strategy has now prepared stock trade setup for relative strong or relative weak stocks only.
10Year Bond yield is now in resistance area between 3.90 – 4.20. It can rest there. But final resistance can be seen near 4.80 where is upper line of longterm downtrend channel.
Bonds can be traded by Bond ETF or Short ETF for Bonds
I noticed that chart of Homebuilders index shows weakness. So I will look for short-sell trade opportunity for my ETF trading strategy and also stock trading strategy in this sector.
Homebuilders relative weakness on chart
I noticed during scanning for opportunities for my ETF Trading strategy that Dow Jones US Retail Estate Index signalize possible troubles ahead. It shows relative weakness on the chart and so I am preparing to enter short trades in breakdown of support level near 300 pts.
GILD stock chart presents bearish situation. It looks like this stock is going to make breakdown and new strong down move. It could offer very good risk reward for stock trade setup
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I have noticed that Health care sector (especially Pharma) is showing signs of life again. It managed nice bullish range breakout yesterday. I think it could move higher in next days and weeks.
This sector is best tradable by sector ETFs…
I was quite reluctant to buy long positions during last week rally. I would like to see more significant correction first.
Yesterday stock markets presented bearish signal. After very strong open with gap up they reversed their course and finished day on their lows. There was also strong volume too.
Below is example of Nasdaq chart. Nasdaq is leader of current rally and bearish reversal candlestick with strong volume signalize that we could see some correction. Correction which is much needed, I think.
What is your opinion ?
