Ideally, you want to see trends accelerating. From June 24th to July 22nd, the Ps gained nearly 8%. Since then, they have gained less than ¾%. As mentioned in yesterday’s newsletter, I’m not going to fight a market that is at (or near) new highs. I’d just like to see some acceleration. I’d also like to see the Ps put some distance above the May peak.
The Quack has been looking a little bit better. It is up nearly 2% month to date—much better than a poke in the eye.
Monday’s action was a bit of a shoulder shrug. After all was said and done, a lot more was said than done. The Quack and Rusty did manage to end in the plus column. At these levels, that’s all it takes to keep them at multi-year highs/all-time highs respectively.
Bonds were a little soft. As I’ve been saying, I’d like to them stabilize soon. Stop me if you’ve heard this before: It’s not the absolute interest rates that have me concerned but rather the delta (i.e. change) in rates.
Not much as changes with setups. As a pullback player, I’m not going to see a lot of setups with a market that is at or very near new highs. Once again, this will likely change drastically on overall follow through and a correction (i.e. the next pullback).
I still like selected Metals & Mining stocks such as Gold, Silver, Uranium, and the Rare Earths. Just make sure you wait for entries here since they have been a little soft lately. Also, pick your spots carefully because many have overhead supply. There’s nothing magical about my approach to technical analysis. I’m just looking at a level where losers might be looking to get out at breakeven—it is just human nature.
I’m still seeing a few shorts in previous high fliers but with the indices at/near new highs, I’m not going to fight it. See yesterday’s newsletter: “Be a lover, not a fighter.”
Futures are soft pre-market.
Best of luck with your trading today!
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