Wednesday April 9, 2014
Markets Rebound on Fed Minutes.
As I mentioned in my yesterday Market Commentary, there was a possibility of rebound rally, especially in the NASDAQ. Indeed today markets rallied strongly in am and then got even more help following the release of Fed minutes. NASDAQ gapped on open and gained 1.72%.
Market Breadth Index also improved and closed in the positive territory. We are not yet ready to lift Bear Warning and no buy signal was yet given by our proprietary systems.
TLT appears to be entering yet another downswing. It should find support above the 50 day moving average (DMA), otherwise the rally in TLT will be called into question.
EEM negated the topping candle from April 4 by closing above $42.13. EEM has been going pretty much straight up since March 20, so a throwback to around $40-41 is possible and would be healthy. The longer and steeper this uptrend continues, the harder the throwback may be.
Gold managed to close above the 50 DMA. It's also about to have a bullish MACD crossover. Unless it fails here, I see it retesting the March 17 high soon.
IYR is digesting following breakout above March 5 high.
Oil closed above March 7 high on very good volume. It is set to challenge March 5 high at $105.22
Natural gas attempted to push higher and briefly touched $4.59, but the higher prices were rejected for now. We still have a DGAZ position open, but will get stopped out should gas close above $4.59.
Bottom line: An oversold bounce is unfolding
Open positions: GDX, NUGT, IYR, TLT, EEM
Hedging positions: DGAZ, UVXY (closed with small loss)
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