DecisionPoint Diamonds scans have failed to supply. So as to get even a number of outcomes, now we have needed to ease the restrictions, notably on EMA configurations. If we do not get scan outcomes for “Diamonds within the Tough”, we dive into the Trade Abstract on StockCharts.com so we will discover pockets of power. Properly… there are none.
As of yesterday, EVERY trade group had declining Worth Momentum Oscillators (PMOs). Right this moment, two PMOs managed to rise a hundredth of a degree. Technically that’s constructive momentum, however these teams are nonetheless very suspect.
The primary is Oil & Gear Companies ($DJUSOI). The value chart is murky at finest, however there are a number of indicators of life. The RSI entered constructive territory above internet impartial (50) right this moment. As famous within the opening, the PMO has turned up above each the zero line and sign line, which is normally thought of very bullish. Whereas worth did rebound and closed above the short-term rising development, it stayed beneath on the 50-day EMA and February lows.
The Crude Oil chart (USO) is way from encouraging. Sure, there was a rally right this moment, however it completed with a bearish stuffed black candlestick. Indicators are nonetheless very adverse. Till this chart appears to be like extra wholesome, I might watch out with this trade group.
The opposite trade group that noticed rising momentum was Gold Mining ($DJUSPM). The Mining ETF ($DJUSMG) remains to be displaying declining momentum.
We have been writing within the DP Alert that Gold Miners are beat down and actually weak to extra decline. As an alternative of utilizing the trade group chart, we’re going to use GDX. We’ve “below the hood” indicators obtainable to us on that chart.
At the moment, GDX is at 52-week lows and, after the latest breakdown beneath the July low, we have warned that this group is not prone to rebound anytime quickly. The massive drawback for Gold Miners is the entire lack of participation. You will discover 0% for practically all participation indicators aside from one or two shares with worth above their 20-day EMA. Gold had a great day, and that doubtless spurred GDX on.
The Gold chart is displaying enchancment with right this moment’s rally, form of. If Gold can proceed to rally, fishing from the Gold Miners could be palatable. Nevertheless, Gold Miners aren’t merely topic to Gold costs, they’re topic to the general market development as they’re firms, not the steel.
Conclusion: There may be nowhere to cover out. Rates of interest are skyrocketing so the protection of Bonds is out the window and Gold has not been seen as a protected haven, a minimum of not but. The most secure place is unfortunately money or for courageous souls, inverse ETFs and shorts.
Good Luck & Good Buying and selling,
Erin Swenlin
Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin
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Useful DecisionPoint Hyperlinks:
DecisionPoint Alert Chart Record
DecisionPoint Golden Cross/Silver Cross Index Chart Record
DecisionPoint Sector Chart Record
Worth Momentum Oscillator (PMO)
Swenlin Buying and selling Oscillators (STO-B and STO-V)
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside along with her father, Carl Swenlin. She launched the DecisionPoint day by day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an energetic Member of the CMT Affiliation. She holds a Grasp’s diploma in Data Useful resource Administration from the Air Power Institute of Know-how in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
