Thursday, February 27, 2014
It was a Big Day on Wall Street
Today the S&P 500 and the Russell 2000 indices finally managed to put in an all-time high on the closing basis. In combination with a strong market breadth index reading ($VMBI), this tells us that markets are headed higher in the short to medium-term.
Gold closed at $1331.70 with an inside day. An inside day happens when the entire today's range falls within yesterday's price range. An inside day usually precedes a strong move. A close above or below February 26 price range should clarify price direction.
Gold miners fared slightly worse then gold itself and are in danger of rolling over to the downside. A close below 20 day exponential moving average (eMA) may trigger a sell-off.
Treasuries gained strongly again, albeit on low volume. A TLT close above 109.34 could target a move to around $114.
Real Estate (IYR) has been range-bound for the past 7 trading day. It seems to be gearing up for its next move. Bulk of evidence is pointing to higher prices ahead.
Big move today in emerging markets! EEM gapped-up in the morning and gained almost 2 percent by session's end. A close above $39.87 would likely trigger a rally of about 7%.
Oil remained strong. A close above $103.45 would target a move up to $105 and possibly higher.
Natural gas collapsed this week by over 30%. A rebound is very likely, but all the signs, especially the volume patterns, point to a continued downside.
We are long: GDX, IYR, DEM, DVY, ETV, TLT
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