Gold–breakdown or building a base?
Tuesday, February 12, 9:25 a.m. In its correction since October gold has been confined in a symmetrical triangle formation. The direction of its break out of such patterns usually determines its next direction for awhile. At our sell signal we gave our initial downside target as 1,650 an ounce. Gold has come down to that [...]

Tuesday, February 12, 9:25 a.m.

In its correction since October gold has been confined in a symmetrical triangle formation. The direction of its break out of such patterns usually determines its next direction for awhile.

At our sell signal we gave our initial downside target as 1,650 an ounce. Gold has come down to that level four times now. It bounced off the first three times, but its rally attempts each time continued to fail at either the 30-day m.a., or the upper limit of the triangle.

021213c

Each time it became closer to the tip of the triangle where it would have to break out one way or the other.

It potentially broke out of the triangle to the downside yesterday. But did it? The jury is still out. It could still potentially be just building a base at the 1,650 area.

Not all global markets are moving in  tandem anymore, at least short-term.

Global markets have a very strong history of moving in tandem with each other. That is particularly true regarding annual seasonality, as shown in several independent academic studies. This is a link to more info on that: Market’s Seasonal Patterns in Global Markets!

And so it has been that most global markets pulled back along with the U.S. market from October into mid-November, but have been in significant favorable season rallies since.

Most also became short-term overbought above short-term 21-day and 50-day moving averages along with the U.S. market.

But now it’s become a mixed picture, with some global markets continuing on to higher highs while others have begun to pull back from the overbought conditions. For some the first potential support at 21-day moving averages did not hold.

And for still others the potential support at 50-day m.a.’s has not held either. They include some important economies and markets like:

021213d

 

021213e

To read my weekend newspaper column click here:  The Recovery Continues To Topple ‘Big-Picture’ Theories!

Subscribers to Street Smart Report: There is an important hotline from Saturday, and an in-depth ‘Global Markets’ update from yesterday in your secure area of the Street Smart Report website. The new issue of the newsletter will be out tomorrow afternoon.

Yesterday in the U.S. Market.

A mixed day, with very little volatility and on low volume as the Northeast continued to dig out. The Dow traded in a very narrow range of just 52 points. Only 0.5 billion shares traded on the NYSE, only 1.5 billion on the Nasdaq.

The Dow closed down 21 points, or 0.2%. The S&P 500 closed down 0.1%. The NYSE Composite closed down 0.2%. The Nasdaq closed down 0.1%. The Nasdaq 100 closed down 0.1%. The Russell 2000 closed down 0.1%. The DJ Transportation Avg. closed down 0.1%. The DJ Utilities Avg closed up 0.1%.

Gold closed down $19 an ounce at $1,648.

Oil closed up $1.29 a barrel at $97.01 a barrel.

The U.S. dollar etf UUP closed up 0.1%.

The U.S. Treasury bond etf TLT closed down 0.1%.

Yesterday in European Markets.

European markets were mixed yesterday. But the overall Europe Dow closed down 1.0%. Among individual countries, the London FTSE closed up 0.2%. The German DAX closed down 0.2%. France’s CAC closed up 0.6%. Greece closed up 1.7%. Ireland closed down 0.8%. Italy closed down 0.6%. Spain closed down 1.2%. Russia closed down 0.5%.

Most Asian Markets were closed for holidays Sunday night and last night.

The Asia Dow closed down 0.4% Sunday night and up 0.1% last night.

Among individual markets that were open last night:

Australia closed up 0.1%. India closed up 0.4%. Japan closed up 1.1%. New Zealand closed down 0.1%. Thailand closed unchanged.

Subscribers Premium Content Area.

For Street Smart Report subscribers only, used to provide additional info to that provided in the newsletter, mid-week reports, and hotlines.

To obtain access please click on the ‘Subscribe’ link. It will take you to an information page on subscribing to Street Smart Report, a subscription to which includes access to the premium content area of this Street Smart Post blog.

In the premium content area this morning: Gold signals. Stock market signals and recommendations.


*Premium Content*

Please Login or Subscribe to view this content.

Markets This Morning:

European markets are up this morning. The Europe Dow is up 0.5% Among individual countries the London FTSE is up 0.6%. The German DAX is up 0.2%. France’s CAC is up 0.4%. Spain is up 1.0%. Greece is up 1.7%. Italy is up 0.4%. Russia down 0.5%.

Oil is up $.49 a barrel at $97.52.

Gold is down $1 an ounce at $1,647.

This Morning in the U.S. Market:

This week is another very light week for potential market-moving economic reports, Retail Sales, Empire State Mfg Index, Industrial Production, and a few others. To see the full list click here, and look at the left side of the page it takes you to.

There were no reports yesterday.

This morning’s only report was the Small Business Optimism Index, which ticked up from 88.0 in December to 88.9 in February.

The pre-open indicators remain flat as they have been all morning.

Our Pre-Open Indicators:

Our pre-open indicators are pointing to the Dow being up 10 points or so in the early going this morning, meaningless as to direction.

To read my weekend newspaper column click here: The Recovery Continues To Topple ‘Big-Picture’ Theories!

Subscribers to Street Smart Report: There is an important hotline from Saturday, and an in-depth ‘Global Markets’ update from yesterday in your secure area of the Street Smart Report website. The new issue of the newsletter will be out tomorrow afternoon.

I’ll be back with the next regular blog post on Thursday morning at 9:25 a.m.

Non-Subscribers:

We can help you not only make more profits, but just as importantly avoid losses, and at very reasonable cost!

SUBSCRIBE NOW! To get all of this:

(The equivalent of four or five normal newsletters at the cost of one)

  • The 8-page Street Smart Report newsletter every 3 weeks.
  • Hotline Updates whenever signals or recommendations change.
  • Two specific portfolios (Seasonal Timing & Technical Analysis Timing)
  • A 6-page Mid-Week Markets Report every week.
  • A 4 to 6 page Gold, Bonds, U.S. Dollar Report every three weeks.
  • A 4 to 6 page Global Market Report every three weeks.
  • Sy’s weekly column on markets and the economy every Friday.
  • Access to Premium Content area of this Blog, Tuesday, Thursday, and Saturday a.m.

Market, sector, stock, gold, bond, and dollar buy and sell signals, short-sales, long-side and ‘inverse’ etf’s, mutual funds. Highly regarded and in our 26th year. As a bonus for a one-year subscription you will also receive my latest book Beat the Market the Easy Way- Proven Seasonal Strategies That Double the Market’s Performance. Click here for subscription information.

This blog appears every Tuesday, Thursday, and Saturday morning!

**** End of Today’s post*****

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here