Monitoring purposes SPX: Neutral
Monitoring purposes GOLD: Gold ETF GLD long at 173.59 on 9/21/11
Long Term Trend monitor purposes: Flat
It is said “where ever General Electric (GE) goes so does the S&P”. The second window down from the top is GE and the bottom window is the SPY. The lines done in blue represent where GE made higher lows as SPY made lower lows and a bullish divergence for the SPY. The lines done in red show when the SPY made higher highs and GE made lower highs and a bearish divergence for the SPY. Notice that GE has been making lower highs from early June and SPY has been making higher highs since early June and if GE is the correct foreteller again than SPY may consolidate near term. The door is still open for the SPY to pull back to support near 192 range.
It is said “where ever General Electric (GE) goes so does the S&P”. The second window down from the top is GE and the bottom window is the SPY. The lines done in blue represent where GE made higher lows as SPY made lower lows and a bullish divergence for the SPY. The lines done in red show when the SPY made higher highs and GE made lower highs and a bearish divergence for the SPY. Notice that GE has been making lower highs from early June and SPY has been making higher highs since early June and if GE is the correct foreteller again than SPY may consolidate near term. The door is still open for the SPY to pull back to support near 192 range.
Above chart above is the Gold August 2014 commodity, courtesy of www.barchart.com . Even though both GDX and Gold where up today the Commitment of Traders report for gold suggests upswing in gold is near an end, at least in the short term. The Large Speculators (dumb money) on in the largest long positing in gold going back one year, while the Commercials (smart money) on in the largest short position in gold. Either the smart money or dumb money are going to be right at this junction and the smart money (Commercials) normally have won. We don’t have a cycle low due until later this month to early next month and it would make since for a pull back into that time frame. Picture should be clearer later this month. Staying neutral for now.
Tim Ord
Editor
www.ord-oracle.com
