May 23, Friday 6 AM
As predicted in our last blog, the market has been going higher moving up in 4 of the last five sessions. We expect it to go higher till it reaches the previous highs in SPY and or DJI. Dow Jones Transportation made a new all time high yesterday. Gold is still going lower in its 5th leg down. We may reach between 1222 and 1262 in Gold soon before any significant rally. Dollar is strengthening in a major change of direction and this is not good for Gold. Dollar index is at the highest level in the last 3 weeks.
QQQ includes 100 of the largest domestic and international nonfinancial companies listed on the NASDAQ Stock Market based on market capitalization It includes Apple, Google and Amazon. It has been going up recently and may reach recent highs. NASDAQ will not reach new highs or even come close to recent highs.
The decline in the markets can start anytime between now and end of the month or even go up till first week in June because of seasonal factors. Because of low volume , we expect a day of good decline anytime between now and May 31 before a final move up. So stay nimble and take profits in leveraged positions. The insiders need to distribute stocks to retail customers near the highs before a meaningful decline starts.
Bonds are also showing too much bullishness and this high sentiment will result in bursting of the largest bubble created by Central bankers in the last 10 years. We will get a signal before it happens.
DJI
SPY
QQQ May reach recent Highs.
NASDAQ
IWM Russell 2000 ETF has been the weakest index. Will not go to previous highs in the near term.
TNA Will not reach recent highs before the decline starts again
TZA Will not go to recent lows
GLD Gold ETF going lower
GDX Gold Miners going much lower
DUST 3X bear on miners Going higher
NUGT going lower
TMV 3X BEAR Treasury Bonds (1 Year)
TMF 3X Treasury Bulls Rally Not Over Yet ( 1 Year)
US Dollar Index Courtesy www.Kitco.com
As predicted in our last blog, the market has been going higher moving up in 4 of the last five sessions. We expect it to go higher till it reaches the previous highs in SPY and or DJI. Dow Jones Transportation made a new all time high yesterday. Gold is still going lower in its 5th leg down. We may reach between 1222 and 1262 in Gold soon before any significant rally. Dollar is strengthening in a major change of direction and this is not good for Gold. Dollar index is at the highest level in the last 3 weeks.
QQQ includes 100 of the largest domestic and international nonfinancial companies listed on the NASDAQ Stock Market based on market capitalization It includes Apple, Google and Amazon. It has been going up recently and may reach recent highs. NASDAQ will not reach new highs or even come close to recent highs.
The decline in the markets can start anytime between now and end of the month or even go up till first week in June because of seasonal factors. Because of low volume , we expect a day of good decline anytime between now and May 31 before a final move up. So stay nimble and take profits in leveraged positions. The insiders need to distribute stocks to retail customers near the highs before a meaningful decline starts.
Bonds are also showing too much bullishness and this high sentiment will result in bursting of the largest bubble created by Central bankers in the last 10 years. We will get a signal before it happens.
DJI
NASDAQ
IWM Russell 2000 ETF has been the weakest index. Will not go to previous highs in the near term.
TNA Will not reach recent highs before the decline starts again
TZA Will not go to recent lows
GDX Gold Miners going much lower
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