Weekly Wrap Up For Friday 5/12/23
Broader Market
Looking for a pullback on this Friday - weekly options expiration - probably in the tech sector.
Europe also looks like it has traded into a little zigzag pattern.
Market futures are up, but I'm still expecting a sharp reversal, at the open. German $DAX looks like a counter trend rally. pic.twitter.com/mww0u3a2cB
— Veteran Market Timer (@3Xtraders) May 12, 2023
A simple Zigzag Patern counts a-b-c. Rallies to a lower high, and you have to assume this is a counter-trend rally, when the 16k target was just taken out.
All this sideways action, and continued weakness isn't good. This is how most rallies end. Momentum dries up, as the smart money continues to unload their positions to dumb retail investors.
Of course this sideways action could be bullish consolidation, and it could be that the bulls are only waiting for the short sellers to leave for the summer, so they can drive the market into another bearish capitulation point, and take profits, and I'm still kind of leaning in that direction.
Nevertheless, the market bulls have not paid their insurance money this week, so today is prime time for a little correction.
Looks like the $SPX doesn't want to break out above my green line. Pull back to the 4089 level perhaps. $VIX gap fill on OPEX would be epic. $SPY that! pic.twitter.com/MFccQzUTbk
— Veteran Market Timer (@3Xtraders) May 11, 2023
Precious Metals
Gold, Silver, Platinum – Silver Plunges 4.5%, Breaking Through Key Support Level fxempire
Took long enough, but it looks like my patience has once again paid off.
See: The Week In Review, A Look At The Week Ahead, A Cash Cow, Silver, Oil, and Disney
In that update I told you exactly where Silver and Miners were going, and in previous updates, I predicted that Gold would correct with it, and now you see the chaos.
Will Silver continue to be bought at the 50 day moving average? I'm sure...
I'm watching the 23.50 area this morning. We could see a little washout below that target, but a rebound back above that level will bring with it short covering.
 |
Is Silver and Gold an investment? I'm not sure it is at these prices, but this is where the scared money like to hide, as long as the weak dollar story continues to be broadcast.
I've been predicting this correction in Precious metals for some time, but like I always say, "it takes time for a top to form".
Speaking of Tops
See this pattern on Goldman Sachs $GS - I discovered yesterday
1-2-3 pattern
$GS - this is a great example of how the market bulls use a 3 step process in order to try to cause bearish capitulation.
Which one of these recent highs, do you suppose received Jim Cramer's highest bullish recommendation - 1, 2, or 3? Goldman Sachs $GS pic.twitter.com/We5nmY02wM
— Veteran Market Timer (@3Xtraders) May 10, 2023
If they perform the same stunt in the Silver market, then we could see another new high in Silver
That's not a trade I'm looking to chase, but if we see that I'll be looking to sell Silver again!
Take Care, AA
No comments:
Post a Comment