This morning’s video covers some really interesting and educational points based around questions members have been asking me. Also below is a chart of the broad market showing my thinking for the next few days.
Pre-Market Analysis Points:
- Dollar index continues to push closer to our key resistance level to form a right shoulder on the daily chart. If this pattern plays out then expect the dollar to drop sharply in 2013 and for stocks to rally.
- Crude oil chart is ugly with a broadening pattern. It provides no real insight on what will happen next.
- Bonds are the same… staying away for now.
- Previous metals and metals stocks are holding up well and look bullish. We may take a small long position if this pattern holds.
- Natural gas is still too lofty for me… staying away for now.
- SP500 has a lot of interesting things unfolding which is clearly explained in the video. Keep in mind all major indexes move together so when there is a major bottom in say the SP500 everything else bottoms also like DOW, NASDAQ, Russell 2000 and high beta stocks like AAPL, GOOG etc…