Back in late August, we suggested that the markets would return to a more normal state with more trading volume and activity when traders returned from their summer vacations. Well, the comment out of Europe from Mario Draghi, head of the ECB, certainly propelled the dart of September to a quick start!
Yesterday's market action was a combination of new buying, and a large part of the move higher in the equity markets was short covering, as shorts scrambled to cover positions.
Another big call out yesterday was the move in the precious metals markets. Today we are seeing follow-through buying in gold, silver, and copper. Make no mistake about it, we are in bull markets in these metals. We are looking for all these markets to be strong for the next six months.
Look for the markets to close well today, as traders will be wary of taking home any short positions over the weekend.
This maybe a perfect weekend to employ our 52-week high rule to any market that is making new 52-week highs on the close.
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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