Page menu

Thursday, September 4, 2025

Mania/ Capitulation, Momentum, Gold. + Comparing the US $SPX Performance to Foreign Markets

 Be sure to checkout all the recent updates links to all recent articles can be found in the sidebar menu:

Yesterday, I covered the reversal in Crude Oil, the Breakout in Google (Alphabet), and I even pinned down the trend on the only sector that seems to matter to Wall Street, Big Tech. 

You can usually find the latest blog update pinned to the top of my twitter feed @3Xtraders. I'll often add informational tweets to the pinned tweet, as I did yesterday. 

 I also hinted to the $VIX being sold at the 200 day moving average, something that is so obvious...   

I'm 100% sure that, that is a better view of the broader market than you will ever find on CNBC pro. 

 Gold mania continues  

Metals mania, and the media saturation that goes along with it seems to have reached its peak, and if I'm correct the algos know what to do next, take profits. 

 I suspect that isn't the top, because it's not a strong enough reversal, but I think we could be close to a pullback.  

 And that brings me to my next point Momentum  

 We're NOT only seeing momentum in Metals markets but also foreign markets, several of which I called out by name yesterday including Canada.  

The money flow into some of these foreign markets has been nothing short of astounding, far surpassing what we've seen in Gold, and Silver. 

By the looks of it; Donald Trump has only managed to make foreign markets great again, because they are out-performing US markets by leaps and bounds! Don't believe me? Pull up a Global Dow chart - trading up +17.5% for the year!  

$GDOW  - Bought around 4800 in January - currently trades at $5695. 

If the $SPX was on the same track it would be trading around $6785.  

 Here's an even more sobering view of the Toronto market!:

 $TSX - trades back into the (repaired) channel. Up nearly 20% since April! 

Note: the lack of any price labels since April. I don't believe this is due to a glitch in the Stockscharts software, but to the fact that there has not been any significant pullback...


I've never really given much thought to price labels, but I've also never seen a market like this. 

From StockCharts FAQ:  

Price Labels are balloons that display price or index values above and below significant peaks and troughs. The main purpose of Price Labels is to visualize significant highs and lows of price action. When you enable Price Labels on your chart (check the Price Labels box under Chart Attributes to enable), you can quickly see the highest and lowest values displayed. You don't have to look up these values in a separate table or use the Inspect (crosshair) tool.

Price Labels may look like they gave good signals in the past, but they’re not designed to be trading signals. To generate price labels, we look into the future when deciding where to display them. You’ll never see a price label appear at the far right edge of the chart. This is why Price Labels can't be used for trading signals.

In my personal opinion AI trading algos have taken the place of rational thought, and valuation is out the window, so you would have to think like AI, in order to anticipate a top.    

Australia 

The Australian market has been on a similar tear, until just recently.   

 $AORD - Rug is pulled at my stophunt (line) highlighted in Red. It was bought at the 50 day moving average. If this were a crash, the 50 day would have been taken out, in a much larger gap lower, and that's exactly what I'm expecting to see, before Trump's second term comes to an end.  

Take Care, 

AA  

 

 

  

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)