5 Charts to Watch This Week
Gold had an impressive end to the week rallying more than $50 (3%) on above-average volume after testing the bottom of its recent trading range.
However, today it came right back in and has given up all of Friday's gain.
The uptrend remains intact but the price action has been choppy and volatile frustrating both bulls and bears.
I'll be watching closely this week to see if we can resolve this current trading range/consolidation.
High Yield Bonds
High yield bonds or junk bonds have not been a good place to be as of late and are clearly pointing to a "risk-off" environment.
They took it on the chin all last week and undercut the May low.
Today HYG gapped even lower. Is this a sign of capitulation? Could we get a reversal candle (Hammer) here?
US Dollar Index
The US dollar index continues to rip higher.
When things really get ugly in the equity markets or "risk assets" the US dollar becomes the real safe haven.
Where do we go from here?
Oil & Gas Stocks
Last week I pointed out that energy stocks might be headed for a correction or at least a pause.
When the selling in equities starts to accelerate, the risk-off trade eventually gets to everything including what has been working the best.
Will they eventually come for energy stocks? They are today.
Is this a "buy on dip" moment or the start of a larger correction back near the trendline and 200-day moving average?
Chinese Tech Stocks
Chinese technology stocks broke a trendline last week to the upside and my Twitter feed was full of bulls.
However, trendlines are not very reliable and can easily be adjusted and re-drawn to fit one's bias.
What I'm watching is the recent false breakout. How much further does price have to come back in to shake out those who got burned buying the breakout?
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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.