7/03 Friday market update (Short Term)

Posted on Posted in Weekly Featured Articles
7/03 Friday market update (Short Term)

DOW/WALL ST:  Could 7th March be the real turning point? It is possible if tomorrow report is bad. If it is a good report, it could go higher. It is really a scary market to go LONG without a significant pull back. This has been going on for a long time and is indeed an impulse wave 3 and if major wave 4 correction sets in, we could see a deeper pull back and it may go on for at least 4 weeks-8 weeks. Dow so far has not broken to new high and that clearly signal intermittent negative divergence to SP and nasdaq.

ACTION: Shorted at 1875. Dow can be shorted at 16450-16470. Certainly, uptrend is still very strong and no sign of abating. But, it is overly bullish and need to be cautious for those who are long. This is still a high risk trade as sell signs based on technical is not there yet

GOLD SILVER: Gold is Consolidating and could break 1350 tomorrow morning if employment report is poor. Clearly, the Resistance is 1350 currently and if able to stay above 1350, the next likely target of 1360 is not that formidable. 1425 is the KEY LEVEL that may be challenged. In any case, I am pretty sure gold is in the bottoming process and gold is like a baby gold bull learning how to walk properly. It is just a matter of time for gold to grow from baby to young adult who can hit the tennis ball as hard as the world top two 2 tennis player. Be patient and wait for the baby bull to grow. Though gold may still come down to 1089 but it is becoming less likely as 4 banks so far have started to upgrade the gold forecasts to neutral from bearish rating. It is only 2 months ago, they issued a very bearish forecast and from here, you should know that they are ‘bunch of greedy people’ that can’t be trusted- you need to play your own game- following them can only caused you to lose your shirts in the long run.

ACTION: Buy at 1304 with tight stop loss or 1350 if it breaks.

ASX:  Still not the time to short anything yet except FMG at 5.50 or higher. Can consider 5.42 or higher to hit and run for 1-2 days

ACTION: 1. Reshort FMG at higher level ( 5.50 or higher) – and hold ASX short ( 5436-5460).

                 2. Gold is in the bottoming process – the best strategy is to accumulate at the back-tested area and hold a bit longer. Trading sell depends on how we look at the gold price each day. I have bought quite a bit SLR and BDR yesterday.

 

 

Share This :
Facebooktwittergoogle_plusredditpinterestlinkedinmail

Leave a Reply

Your email address will not be published. Required fields are marked *