Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock and Gold Market Analysis for Dow, Nasdaq, Bonds, IBM, AAPL and BIDU

Stock-Markets / Stock Markets 2010 Jul 05, 2010 - 02:11 PM GMT

By: JD_Rosendahl

Stock-Markets Diamond Rated - Best Financial Markets Analysis ArticleThe stock market finished last week on a down note.  It couldn't find any legs all week long, as disappointing economic data rolled out all week, and uncertainty filled the market place.  Even Biggs had concerns and sold stocks. 

$INDU:  The DOW traded down to its prior down trend line.  The RSI has moved into oversold territory.  There's nothing technically bullish so far on the DOW.  The 50 and 200 day MAs are about to cross, which often can pull price in that direction, so maybe a little bounce next week, however, It still looks like this leg down has not finished. 




The weekly chart below reflects both the RSI and MACD have more room to the downside before getting oversold.



The monthly chart of the DOW below reflects an Evening Star forming March-April-May, with the market failing at the 50 month MA.  June was a month of follow through on that pattern.  Where we close for July will be interesting.  A lower close near the 200 month MA will create 3 down months, and a 3 Black Crows pattern and possibly roll the monthly MACD over.  Those would both be bearish.  Note:  The SP500 is already below its 200 month MA.



QQQQ: The weekly chart of the Qs has stopped right at the 200 week MA.  The bearish part of this chart is both the RSI and MACD have much further to go before they reach oversold on the weekly time frame.  They don't have to go there, but if they do, we have a lot further to go on the downside before we hit oversold.



$USB:  The daily chart of the long bond has approached overbought and maybe ready for a little pull back, which should correlate with a little bounce in the stock market.



The weekly chart of the long bond below reflects the safety trade is still on.  There's room on the RSI for more upside, and the Bollinger Bands are still widening.  I'm personally putting more weight on the weekly chart of the $USB, and it's time frame dominance will keep the $USB from pulling back too much to burn off overbought conditions on the daily.



Gold:  The daily chart of gold is below.  We have multiple bearish divergences going on the daily chart.  The gold market looks tired and need of some corrective behavior of price and/or time.  Gold broke below the blue uptrend line, which is not terribly significant.  Gold did have a big down day followed by an inside day on Friday.  That indicates further price weakness in the near future.  A break below the black up trend line is far more bearish.



The weekly gold chart below reflects some bearish divergences on the RSI, and forming on the MACD.  The black up trend line is the same as on the daily.  We've already touched this trend line on several occasions, so it has some significance.  A break below that would probably release more selling pressure down to the 50 week MA at $1100.



Big Stocks Watch:
IBM:  The weekly chart of IBM reflects a battle right at its prior peak.  It has struggled in this price zone, while both the RSI and MACD have rolled over.



IBM's daily chart below highlights the trading zone or battle ground for IBM.  The green line is the prior peak, and just happens to be exactly in the middle of this battle zone.  We could be due for a little bounce since we are at the bottom channel line.  That being said, if IBM gets below its bottom channel line, it's over for the market.



AAPL:  Below is the daily chart of AAPL.  We have some bearish divergences on the RSI and MACD, and AAPL looks to be doing what so many other stocks have done.  Fall below the 50 day MA and move down to or below the 200 day MA.  We should now soon, if this is the case.



In the weekly chart of AAPL, I've used the Pitchfork for visual perspective.  Notice the MACD, we are right back at previous levels that ushered in a sell off.



BIDU:  A market favorite has powered to overbought levels on the weekly chart below.  There's a little bearish divergence on the RSI, and the weekly MACD is rolling over.  The picture lacks multiple divergences to be really bearish on this stock, but it does seem tired and ready for  corrective behavior in price or time.



From My Trading Desk:   For my recent trades, open positions, and stocks and ETFs on my watch list please go to http://roseysoutlook.blogspot.com/  There's more charts and technical analysis.

Hope all is well.

By J.D. Rosendahl

www.roseysoutlook.blogspot.com

J.D. Rosendahl was a former stock broker/investment consultant (currently not licensed) before becoming a Commercial Banker for the past 14 years. He manages his family's wealth, helping them avoid the high tech bubble and the real estate bubble melt downs and preserving wealth.

© 2010 Copyright J.D. Rosendahl - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

peter sarjios
02 Nov 10, 02:08
is it the right time to buy gold shares?

is it the right time to buy gold shares?

every body in the market asure that the gold shares wil gain double of its value in the next few months?

what do you recommend?

thanks and kind regards


Post Comment

Only logged in users are allowed to post comments. Register/ Log in