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Time For Another Market Pause?

  • Written by Syndicated Publisher No Comments Comments
    January 3, 2014

    Many interesting situations as we enter 2014.

    Thanks to the two-week spike-up in reaction to the Fed’s decision to begin tapering back its stimulus, the stock market has already become short-term overbought again. 

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    The Dow has now been up 9 of the last 11 days.

    Time for another pullback to at least retest the support at the 50-day m.a.?

    Keeping an eye on gold.

    Since October of 2012 gold has repeatedly become short-term oversold beneath its 30-day moving average and overhead trendline resistance, and attempted a rally, only to have the resistance at either the m.a. or trendline halt the rally attempt in its tracks.

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    With the potential support at its October low having failed to hold, the next potential support is at the July low.

    And after reaching that support, gold has been putting up a valiant stand over the last week or two, just enough buying coming in each time it threatens to break below the support to prevent it from doing so.

    Actually it has broken fractionally beneath its July closing low of $1,212, closing as low as $1,195 a few days ago.

    But this chart shows the intraday low in July, which was $1,183. And that has not been broken, and our indicators remain on the September 16 sell signal.

    And gold is attempting again to get a rally going this morning, up $22 an ounce at $1,224 at the moment. (The first resistance at the 30-day m.a. is at $1,235).

    One of these times the bottom will be in, and this could be it. But it will have to prove it. 

    To read my weekend newspaper column click here:  Investor Expectations Also Need Tapering As We Enter 2014

    Subscribers to Street Smart Report:

    The mid-week Markets Report from yesterday, New Year’s Day, is in your secure area of the Street Smart Report website.

    Non-Subscribers: We have updated the sample issue of the Street Smart Report newsletter to a more recent issue you might find interesting. To see it click here: http://streetsmartreport.com/tosample.html

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 

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