TradeWinds for May 16th

The past week pretty much unfold the way that we had expected it to. It got a little shakey coming down the stretch, but the strength was generally to the long side through out the week.

Looking to the week ahead, its actually kinda of a tough call. The underlying momentum as depicted in out Slow Momentum indicator is still very much in the positive TradeWinds territory. So it is a buy the dips market. The Moderate and Fast momentum indicators, while moving strongly to the upside tell me they will reach a point sometime this week where they need to take another refueling stop. I kinda of think we will see some more upside early in the week and then some weakness. For you traders, that means look to be taking profits on any open positions and then look for buying opportunities late in the week.

By the way, its fun to read all the headlines about how the market is moving against this or that news, or people finally getting on board that this is a market to be playing to the upside. We have know that for many weeks now. And I can assure you that you will hear first when the market is ready to give up its long ways.

From a sector perspective its still a broadbased long side move. Of the forty that we track on 10 are neutral or negative. We are watching with interest the recent movement in the precious metals. They are still in negative TradeWinds zone, but they are rising. We will keep you informed if it looks like its time to play them again to the long side. Right now I am thinking its a false move, given the improving strength of the dollar.

Now check out our Top 25 lists and our TradeWinds Black Box results for last week.