Hello traders everywhere. One week after we saw the stock market make gains we've retreated into negative territory. All three indexes are posting weekly losses and continuing to be bound in a sideways trading range. This weeks weakness is due to a rally in crude oil prices, a pickup in government bond yields as inflation rises and geo-political uneasiness around the globe.
The 10-Year Treasury yield hit a fresh seven-year high settling on Tuesday at 3.082%, compared with 2.995% Monday, marking its biggest one-day advance since March 2017. It will end the week above the 3% level at 3.069%
The U.S. Dollar continues to gain strength with a gain of +1.21% on the week. This weeks gain erases last weeks small loss as the dollar looks to heading higher. With green Trade Triangles on the board keep your eye on the $91.28, a move below that level will trigger a red weekly Trade Triangle indicating a move to a sidelines position. Continue reading "Stocks Struggle For Traction Posting Weekly Loss"
I hadn't updated the silver chart since February when I warned you that the metal dangerously approaches the support of the Triangle pattern. After that, I posted a gold update as I found an amazing historical similarity there.
There’s been so much water under the bridge since February, but nothing had changed in the precious metals markets until the end of last month when the crucial trigger was pulled.
Below is an updated chart of the silver that I would like to share with you these days as it contains an excellent trading opportunity.
Silver Weekly Chart: Triangle Was Broken Down
Chart courtesy of tradingview.com
Silver could escape from that troubled situation which I pointed out in February as the price briefly punctured the downside of the Triangle pattern (orange) and then happily reversed higher on the back of broad dollar weakness. Continue reading "Silver Looks Into The Dark Abyss"
Hello traders everywhere. A surging dollar is putting increased pressure on gold driving it down to its lowest levels of 2018 to date. Gold is currently trading below the $1300, it's the lowest level since late December of 2017. With red Trade Triangles across the board indicating a strong downtrend and higher than usual trading volumes expect gold to head lower.
The dollar's continued strength is due to a surge in interest rates. The benchmark 10-year note yield hit 3.095% on Tuesday, its highest level since 2011, while the two-year note yield traded around levels not seen in a decade.
As for stocks, overall the stock market is on the rise with the big mover of the day being Macy's (M). Macy's shares rallied more than 10% on stronger-than-expected quarterly earnings. The company's same-store sales a key metric for retailers, rose 4.2% last quarter versus an estimate of 1.4%.
Bitcoin finally succumbed to the "bitcoin bears" and issued a red weekly Trade Triangle at $8,342.58 while breaking through the 50-day moving average, which could become the next level of resistance if bitcoin were to move lower.
Key Levels To Watch This Week:
Continue reading "Surging Dollar Puts Pressure On Gold"
Analysis originally distributed on May 10, 2018 By: Michael Vodicka of Cannabis Stock Trades
US cannabis stocks got a big jolt last month after President Trump promised to support cannabis.
After taking a short breather, it looks like US cannabis stocks are ready for another push higher.
The MJIC US cannabis index in a formation known as a Bullish Flag – a formation on the chart that frequently leads to an upside breakout and new high.
This Bull Flag is creating a great opportunity. If the index surges higher cannabis shareholders should pick up some nice gains.
Today – I want to reveal a promising young cannabis company headquartered in Canada that is making a big splash in the US cannabis market. Continue reading "Are US Cannabis Stocks Ready To Push Higher?"
Hello traders everywhere. The DOW came close to breaking the 25,000 level in early trading, which would have been the first time since early February that it had traded at or above that level. But it wasn't to be as it soon retreated from those highs to only be trading slightly higher on the day. The biggest contributor to sluggish trading is thin volume, overall trading volumes have been declining for some time with Friday and Monday being two of the lowest-volume days of the year at the NYSE. Have traders started the ole "Sell in May and go away" trend?
The big news of the afternoon was that the U.S. Supreme Court ruled that states can allow sports betting, which gave a boost to some of the Vegas/gaming stocks. The ruling takes the U.S. a step closer to legal sports betting in numerous states, possibly even nationwide. Currently, the practice is legal only in select places such as Nevada, home to the gambling capital Las Vegas. While Nevada's Gaming Control board reported $4.8 billion in sports bets last year, the black market total is considered to be many times the legal market.
Mark Cuban told CNBC on "Squawk Alley."
"I think everyone who owns a top four professional sports team just basically saw the value of their team double," said Cuban, owner of the NBA's Dallas Mavericks.
Key Events To Watch This Week:
Continue reading "Stocks Gain On Thin Trading Volume"