Technical, fundamental and seasonal influences point to another volatile period for equity markets around the world this week. Preferred strategy is to wait for weakness to purchase sectors that benefit from favourable seasonal influences at this time of year and to watch for entry points on weakness in other economically sensitive sector in October.
A Sampling of the 50 Charts and Indexes analysed below and a link to all 50 charts and analysis.
Goldcorp Inc.(NYSE:GG;TSE:G) – $48.07 Cdn. is expected to open higher this morning after Deutsche Bank upgraded the stock from Hold to Buy. The stock has a positive technical profile. Intermediate trend is up. The stock moved above its 200 day moving average on Friday. Short term momentum indicators are oversold and trying to bottom. Strength relative to the S&P 500 Index and TSX Composite Index turned positive at the beginning of August. Seasonal influences currently are positive, turn briefly negative in the last three weeks in October and turn positive thereafter until February. Preferred strategy is to accumulate at current or lower prices for a seasonal trade lasting until February.
Goldcorp Inc. (USA) (NYSE:GG) Seasonal Chart
The S&P 500 Index eased 5.01 points (0.46%) last week. Intermediate trend is down. Support is at its August 8th low at 1,101.54. Resistance is at 1,230.71. The Index remains below its 50 and 200 day moving averages. Short term momentum indicators are trending down and are slightly oversold.
The TSX Composite Index added 160.97 points (1.40%) last week. Intermediate trend is down. Resistance is at 12,798.53. The Index trades below its 50 and 200 day moving averages. Short term momentum indicators continue to trend lower and are oversold, but have yet to show signs of bottoming. Strength relative to the S&P 500 Index remains negative, but is showing early signs of a change.
The U.S. Dollar was virtually unchanged (up 0.05) last week. Intermediate trend is up. Short term momentum indicators are overbought and are showing early signs of peaking.
The Canadian Dollar dropped another 2.03 cents U.S. last week reflecting weakness in commodity prices. Intermediate trend is down. Support at 96.46 cents U.S. was broken last week. Short term momentum indicators are oversold, but have yet to show signs of bottoming.
Crude oil slipped $1.06 per barrel (1.33%) last week. Intermediate trend is down. Support is at $75.71. Resistance is at $90.52. Resistance also came in close to its 50 day moving average currently at $87.46 per barrel. Short term momentum indicators are oversold and are showing early signs of bottoming. Seasonal influences are negative.
Gold dropped another $35.50 U.S. per ounce (2.14%) last week. Gold briefly tested successfully its 200 day moving average currently at $1,528.51. The 200 day moving average has proven to be a reliable support level since 2003. Short term momentum indicators are oversold, but have yet to show significant signs of bottoming. Stochastics may be starting to bottom.
….much much more analysis and charts HERE