Master Charts Trading - Stock Market Indicators & Trade Alerts
Connect To Us!
  • MasterChartsTrading
  • Blog
  • Sign-Up
  • Members
    • Elite Trading Blog
    • Stock Speculator Blog
    • Training Library >
      • Basics of Trading
      • Risk & Trading Psych
      • Trend Identification
  • Help
    • Hall of Fame
    • Social
    • About Us
    • Contact
    • FAQs
    • Disclaimer
    • Refund Policy
    • Privacy Policy
    • What We Trade
    • Newsletter samples

Stocks In Bear Warning. Bonds & Gold Gain.

4/8/2014

0 Comments

 

Monday, April 7, 2014

Stocks In Bear Warning. Bonds & Gold Gain.

  Early morning rally in stocks was met with renewed strong selling. All indices lost over 1 percent with NASDAQ and the Russell 2000 leading the markets…lower. Whereas NASDAQ is getting close to finding some support, I believe the large caps are just getting started in selling. The very broad Russell 3000 index today closed below its 50 day moving average (DMA) - this is a bearish development for the broad market.

  $VIX spiked today and our Market Breadth Index, the $VMBI, has dropped into bearish territory. We are once again issuing a Bear Warning. A close below the 50 DMA for $SPX would trigger a Bear Confirmation. There is decent support in the $1837-1839 area for $SPX, should that give, next stop would be $1820-1800 area. We have opened a hedging position by purchasing UVXY to play the $VIX rise.

  TLT continued its rally. TLT is showing multiple bullish characteristics: it’s above the 50 and the 200 DMA, the 50 DMA is sloping up, Ultimate Oscillator is not overbought, positive On Balance Volume, and about to have a bullish MACD crossover. As I stated before, I am bullish on TLT and expect prices around $115.

  EEM had an Inside day (entire today’s price range is within yesterday’s price range). Inside days presage a strong move…down or up. The emerging markets ETF had a stellar run that started March 20 with over 10% gain. EEM is currently at resistance from the late December peak. EEM is also overbought, so a pullback to the 200 DMA or even lower is possible. This pullback would likely be a good buying opportunity.

  Gold also had an Inside day. A close above $1307.50 would strongly confirm the rebound in gold prices. We are long GDX and NUGT and will add to both positions should gold close above $1307.50

  IYR is challenging early March highs. It did put in an intraday high at $68.70, but pulled back. A close above $68.54 would open a possibility of retesting May 2013 highs.

  Oil is digesting, likely before a push higher. Next resistance is at $102.24

  Natural gas is challenging March high at $4.59. A close above it, may lead to a retest of the 50 DMA, currently at $4.78

 Bottom line: Rotation out of stocks and into safety assets is continuing.

  Open positions: GDX, NUGT, IYR, TLT, DVY (closed), ETV (closed)

  Hedging positions: DGAZ, UVXY

Picture
Ready to trade? Sign-up Today
0 Comments



Leave a Reply.

    Picture
    Picture
    Subscribe to our mailing list!
    Picture
    Picture

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    RSS Feed

  All information on MasterChartsTrading.com is for educational and entertainment purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities. Read full disclaimer.