Today was a most curious day, Miss Market. If I am correct, I think we are about to see a big rotational shift out of commodities and back to tech, financials and growth.
First, let me eat some crow. I said over the last few days to keep an eye on the precious metals as they just may be ready to bounce back. NOT! Precious metals are done for now as far as trends go - now if Dubya decides to bomb Iran or Syria, that another question. If you were gutsy, you could short them, but I wouldn't until we have a new president in place.
Joining the metals as fading sectors is bonds and I think the Euro may not be far behind. Yes, we may have seen the bottom for the dollar. That would also mean a top for oil. I am basing these judgments based on the strength of the down trend in metals and the growing down trend for th Euro. Lets watch what happens over the next few weeks.
Today's actions was rewarding to the longs, but disappointing in how the market faded into the close. I thought for sure this would be the day that SPY would close over 139, but not to be, which means it remains the only major index that has not cracked it nearest major resistance.
Our momentum indicators are in good shape for the long side. Fast momentum is flattening its down move getting ready for the next cycle up. Moderate momentum is shedding some of its over bought state and slow momentum is flat lining in Positive TradeWinds territory.
For more information on specific ETFs and Stocks check out our Top 25 Lists and TradeWinds Black Box.
Also, check in over the weekend as we will be introducing a new feature.
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