Hello Everyone,
Long Term: Bear Market, Intermediate Term: Downtrend, Short-Term: uptrending in possible some sort of abc wave 4 bounce
Market Comments: Volatile day, which started off with strong morning weakness that saw the SPX down nearly 70 points before putting in a low only to go positive briefly by the afternoon and closing only moderately down roughly -0.25% for most of the indexes. The indexes are still up roughly 5.5% for the week.
So far the market has staged a strong rally off the deeply oversold condition from last Friday, for now we are viewing this as a larger degree wave 4 that could unfold in an abc pattern, however we'll adapt and trade to what unfolds vs being locked into a biased scenario.
Bonds/Rates: High Yield Corporate bonds rallied with the market, and so did TLT 20 year bonds. The 10 year rate was also down
Currencies: The US Dollar rallied nearly 1% today, however is still down -0.9% for the week, this has helped the general market, commodities, and precious metals stage a rally
Precious Metals and Mining Stocks
: Gold logically pulled back at the downtrend line and 50 day MA. Still this area is attractive to me on a pullback. GDX appears to have a completed 5 wave decline, which hints that this area could be a decent swing trade opportunity
Reversion-to-the-mean systems: No new system trades (early morning when the SPX was trading down nearly 60 points, I sent out a trade notification alerting folks that it may be a good area to lock in some gains on that ES short, which ended up being a great call as the SPX recovered nearly all the morning loses).
KISS Trend Systems: no changes
Matt
