The Battle Continues - Who Will Win?

Who will win the battle between the bulls and the bears that is raging in the equity markets?


This morning when woke up I did what I usually do - check the pre-market prices. I saw that all three indices were down over 1% for the day. It would appear that 1-2% swings are rapidly becoming the norm in the month of December.

I will be watching the RSI indicator closely today. If you are not familiar with this indicator we have a short video that explains how it works and how you can best benefit from it. I will also show you in today's video why I'm watching this indicator and where the trigger point will come in on the major indices. Continue reading "The Battle Continues - Who Will Win?"

The Markets Could Get Ugly This Month

As the first week of trading in December comes to an end, the markets have proven to be what I warned everyone about - volatile and dangerous. The last two days for the major market indices have not been pretty and certainly have done some internal technical damage that I will discuss today.

One thing worth remembering, this is the sixth year of a bull market. In bull market terms, that's an old bull that may be running out of steam.

2015 has been a difficult year for many hedge fund managers as there simply has not been a lot of movement in the overall indices. Based on yesterday's close, the Dow is down 1.94% on the year, the S&P 500 is down 0.45% and the NASDAQ is up 6.37%. This is a very mixed picture and I would not be surprised to see more pressure on these markets in December. I think a lot of money managers may just square up their trading books and wait to look at the markets in 2016. Continue reading "The Markets Could Get Ugly This Month"

Big Moves Can Start When You Least Expect Them

Now that the Thanksgiving holiday is over and we're entering December, traders should take extra care. Historically markets can move rather dramatically in December as trading volume thins out when traders start closing down their trading mindset and move out of the markets and into holiday mode. You do not want to start swinging for the fences to try to make your year in December, the odds are against you.

In addition to looking at the markets in general today, I'm going to take an in-depth look at the gold market. Everyone seems to be bearish on gold and what I have noticed over my trading career is that when everyone feels the same way about a market and is on one side of the trade, watch out!

That is the way the mood is right now for gold and there could be a sharp reversal as the shorts, that is the folks who sold gold short hoping to buy it back at a lower price, scramble to cover (buy back) their short positions. Continue reading "Big Moves Can Start When You Least Expect Them"