The market bears had a chance today with JJC, copper, weakness but could not get the job done. Market bears need to push JJC under 48.90 tomorrow, 37 cents under tonight's closing price, otherwise the bulls will charge ahead again. The day started out firmly in the bear camp and the SPX fell down thru the Monday low, but from the start UTIL would not move lower, and JJC could not achieve the lower target. Likewise, the CRB would not push significantly lower as well so the bears ran out of gas.
Then AAPL, and remember Apple is the markets, turned positive. To start the day, tech was leading the broad markets lower; the Nasdaq was leading the SPX to the downside so the bears had the green light. But once AAPL moved higher, this bounced the Nasdaq and the downside leadership disappeared like a rabbit inside a magician's hat. Once tech was no longer leading the downside (due to Apple strength) the broad markets recovered and headed higher. Late day weakness reentered but the bears were already tired and looking for a place to lay down.
Window dressing next week should create buoyancy in the broad markets so if the bears are going to make a run it has to be now. The influences from the major Bradley turn continue to be in effect thru this week but the market turns typically occur within a day or three of the actual date (Friday, 3/16/12) so this expected tighter window would end tomorrow. Thursday is a new moon and markets tend to be weak about two-thirds of the time as the new moon approaches.
The housing sector drama continues tomorrow with Existing Home Sales at 10 AM. Expect the markets to pivot on the news. Oil Inventories at 10:30 AM are also important and another market pivot would be on tap. The market bulls have to keep UTIL above 447, JJC above 48.90 and CRB above 312.50 to keep the party going. A failure of any of these three signals serious market trouble and Keystone's proprietary algo, Keybot the Quant, will likely flip to the short side.
For the SPX, starting at 1406, the bulls need to push above 1409.50 and the bears need to push below 1398 to accelerate the upside, or the downside, respectively. A move thru 1399-1408 is sideways action.
Thank you for posting the positions and picks! A nightcap, and simple thank-you to you too, KS.
ReplyDelete- Ande
Hello KS, thank you so much for all the great insights!
ReplyDeleteI've always like jewelries, therefore, am very interested in gold and other metals. I'd like to hear your opinion on KGC...thanks much!
kf
Hello Ande, there were lots of requests and that seemed the simplest approach for now.
ReplyDeleteHello KF, KGC hit the target entry yesterday (reference Positions and Picks page); note the strong positive divergence pop in the stock. It appears to be one of the better gold miners chart-wise moving forward, but as always, you must do your own due diligence.