Written by: Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)
When the economy is strong Interest Rates Rise to cool things from overheating. The fact that more and more countries are looking at Negative Interest Rates and the Fed saying they will be near zero for the next 3 years shows how fragile the world economies truly are.
High flyers have been selling off hard (many down 15 – 20% so far this month with a lot of Insiders selling (Stan Highlighted)
As always LET the CHART TELL YOU WHAT TO DO!!! but it is definitely a time to be cautious. I still remember my first VectorVest experience in Collingwood, Ontario. Every single person told me “Listen to Stan and you’ll be successful in the Market” That has proved to be wise advice over the years and even more important now in this challenging time. Now for the markets:
USA – RT below 1
DOW JONES: Still in a descending wedge but holding support. Big selling volume today
NASDAQ: Similar to the Dow. Bounced of the 79 SMA today
S&P 500: Weakest of the 3. Broke below the 50 SMA
MKT TIMING: BSR, RT, MTI still weak. Price still above support and trading in a tight channel-
PTSE: Wedge between down-trending line and the 79 SMA Big selling vol today (Friday, September 18). 3 EMA below 8 EMA and well below the 20 SMA
VENTURE: Still in a channel. Flat this week. Big Vol Buying today. 3 EMA above the 8 EMA and both above the 20 SMA
MKT TIMING: MTI, BSR, RT still weak. The price tried to rise but failed. Hasn’t really gone anywhere in the last 9 days
READ Views (Stan continues to amaze) Strategy
GOLD: Broke the downtrend however still in a channel. Still weak volume, RT falling and RT Ranking slightly falling.
Big money people have consistently highlighted that Silver is where you want to be however the last 2 weeks Gold has been the strongest, however you need to be very selective. ELD had a good 2 weeks however everyone’s darling KL was negative. Personally, there is nothing that tells me to rush out and buy so I’ll continue to be patient and wait for the right signal, I believe the Spot Price for gold actually ended lower on the week.
As always nothing more than my 2 cents and I hope it’s of value and interest.