Bottom or Relief Rally?

David Frost // Market Outlook

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October 20  

Since the market has plenty of time to prove itself, it’s too early to tell.

There are a lot more potential fireworks this month with another eclipse, fed meeting and of course the upcoming election.

The likely scenario is at least one more visit either below or close to the low from last week.  The markets try an make it as difficult as possible to read the upcoming moves, which is why we simply let the charts tell us what to do.

The market perceived Apple’s earnings as good enough not to sell em’.

Crude oil continues to struggle which does give me some pause since the over the last several weeks as the market was selling, so was oil.  Therefore, for the time being, they seem more linked together than not, so I’m watching.

Gold is acting as if it wants to move higher.  If so, then there may be another $25 or so left in this up move before turning back down.  Way too early to tell, just an early indication, nothing more.

Bonds may have finally peaked and the yields may have finally bottomed.  Last week we saw a pretty good capitulation move indicating the end of a move, certainly not the start of one.

For the remainder of the analysis, tune into tonight’s video:

 

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost