It's hard to believe, but here we are coming to the end of the trading week and also the end of the second quarter. We only have a few more trading days before Q2 is done and dusted.
I still believe that both of these stocks will move higher, as the Trade Triangles are all in place. If you missed these posts, you can read about Tesla here and First Solar here. Both of these stocks are higher for the week while the general stock market is flat. I view this as a psychologically positive sign for these stocks.
Last week I also posted a special report on gold. I still believe gold is going to remain in a positive upward trend until about the middle of August. That is when this market next cycle should top out. As always, money management stops should be in place on all positions.
Generally speaking the summer months tend to be less active, as many traders take off for some well-deserved downtime. However, I believe that this year is going to be a little bit different, as many traders still think there is further to go on the upside. This market action could entice more investors from the sidelines.
One technical indicator to pay close attention to is the MACD, which is close to turning to the downside. This is very similar to what happened in March of this year when we had a pullback in the NASDAQ to the 3,950 level. I am going to trust the Trade Triangles, particularly the weekly Trade Triangle, to alert me of any weakness in the NASDAQ.
I also have a concern with the S&P 500. I am seeing a negative divergence on the daily RSI indicator. This means we have seen new highs on the actual index, but the momentum did not follow through and make new highs. Sometimes this can be an early warning signal, so that is also an area that I am paying particular attention to.
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