Well, we haven’t seen any signals of a top in the S&P500 or Dow Jones Industrial Average, but based on my analysis, we should be either at or near another top in those two indexes. Maybe not the top, but a top nonetheless.
It’s hard to pick a tops and bottoms which is why I always insist on buying the stronger equities and shorting the weaker ones.
Taking a look at the gold market, it finally broke to the downside. The analysis given here for the past several weeks has been to not be long and favor the downside based on the developing bearish pattern. On both the daily and weekly charts, gold looks like lower prices are in the cards, but we’ll wait to see a set up before making a trade.
Oil still remains in an uptrend and is vulnerable to an entire bucket list of geo-political pressures between Russia, Ukraine, Middle East and any other place that either produces or ships the black gold.
Today is a good day to begin wading in on the short side, which means selecting a weak equity or index to catch on a ride down.
IWM (Russell Small Caps) and QQQ (Nasdaq) remain beneath their recent highs, therefore qualify as candidates for lower prices.
These and more covered in today’s common sense video.
[video_youtube video_url=”http://www.youtube.com/watch?v=6MOt3q4acQs” width=”480″ height=”360″]
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