I have uploaded a January 28th Market update. Click here to go to the show archives page to listen or you can listen on the link below.
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-The FOMC announces policy on Wednesday, with Jerome Powell’s press conference shortly after. If the Fed hints at anything conflicting with Friday morning’s WSJ article, the markets could dump. Stocks, commodities, and gold could get hit. Things are priced very optimistically.
-Except for some short-term trades, all my trading accounts are in cash and I am waiting for the appropriate signals.
-XOP hitting resistance at 30. My concern is that the drillers are performing worse than oil. WTI needs to stay above its 50-day mva of 50.90.
-The BOJ QE has been progressing for at least 25 years. I marvel at all the well-respected economists who contemplate that the Japan’s QE cannot continue indefinitely. I SAY THEY CAN.
-COT reports are still not out and that hinders my weekly futures trades. I am uncertain as to where I see gold. The market action looks good, though the price rises are not very sizable. My one concern about silver and gold is that they are trading much higher than their 200-day mva’s. It’s not a concern short-term, but unless there is a bull market breakout this will eventually cause problems.
-The bond market is in a holding pattern, waiting for hints from the Fed. The global credit market problems have eased since late December when the Fed turned tail.
-Stocks indexes are all positioned similarly above their 50-day mva’s. The elites hope to keep things this way and this is a reason why I think the Fed will not make too much of a fuss on Wednesday.
-The Trump/China trade problems present some great trading opportunities. It changes every day, so sell on “breakthrough” news and buy on the doom.
-The trade dilemma is not supposed to be resolved. It is institutionalized and was set up that way almost 50 years ago. The friction just supports our thesis of future war. Since Trump gained office the trade deficit with China has ballooned.
-Cryptocurrency analysis. The chart and market action still point to further bad news for the bulls. I have no opinion on the cryptos as an asset class, but when XLM, a top-10 crypto, takes out its former bear-market low, I take note.
-Bitcoin analysis in isolation is misguided. I get a much better feel for BTC trading by looking at the larger alt-coins.