Today the DOW was down about 50 points, the S&P was down 7-8 points, the NASDAQ was down 2-3 points, and the Russell 2000 was down 1-2 points. The market is very strong internally and November and December are very strong months for the market. I am looking for the market to pull back and make a series of higher lows moving forward to the end of the year.
I believe the NASDAQ will outperform the market. AMZN was up about $15 today, GOOG has been strong, and FB has made an explosive move up off of the lows. At year’s end I am looking for the NASDAQ to be up double digits (possibly 12-16%), the S&P 500 to be up 5-10%, and the DOW and the Russell 2000 to be up 3-8%. I am now looking for the market to pause and pull back. I will be looking for names such as AMZN, GOOG, FB, and the QQQ (ETF which mirrors the NASDAQ) to set up on the daily charts.
Today the oil inventory number was bearish and most of yesterday’s gains were wiped out. I am looking for a pullback in oil into the 42.50-44.50 range where I would look to buy oil off of the weekly chart with a 38 stop.
Gold was down 7-8 dollars today, now having traded down from the high of 1191 down to 1107. Gold is now extremely oversold and is about 38 dollars below the 10-bar moving average on the daily chart. Although gold is extremely oversold it does not mean that it cannot keep pushing downward. I do not see any clear patterns on gold. I am looking for gold to get an oversold bounce sometime in the next 1-5 days, possibly into the 1128-1140 range. As I have been saying I am bearish gold long term. When gold was trading at the 1185 level I said I would look to be out of any gold stocks (such as KGC and AUY) which had been bought when gold was trading below the 1100 level.
Waiting for Buy Pattern to Set up on Daily
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