The Bottom Line

Posted by Don Vialoux: Timing the Market

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Technical, fundamental and seasonal influences point to another volatile period for equity markets around the world this week. Economically sensitive sectors are following their seasonal patterns. However, most sectors remain short term overbought after huge moves since October 4th. Preferred strategy is to accumulate economically sensitive equities and related ETFs on short term weakness, particularly if they benefit from favourable seasonal influences.

Ed Note: A sample of the 45 charts Don analyses and comments he posts:

The S&P 500 Index gained 10.62 points (0.85%) including 24.15 points on Friday. Intermediate trend is neutral. Resistance is forming at 1,292.66 and near its 200 day moving average at 1,272.27. Short term momentum indicators have rolled over from overbought levels and are trending down. Short term downside risk is to its 50 day moving average at 1,200.78.

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The TSX Composite Index fell 131.40 points (1.06%) last week despite a gain of 167.98 points on Friday. Intermediate trend is down. Resistance is forming at 12,541.84. Short term momentum indicators have rolled over and are trending down. Strength relative to the S&P 500 Index remains negative. The Index bounced from near its 50 day moving average currently at 12,078.56.

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The U.S. Dollar Index gained 0.78 last week. Intermediate trend is up. The Index remains above its 50 and 200 day moving averages. Resistance is at 79.84. Short term momentum indicators are overbought, but have yet to show signs of peaking.

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Crude Oil gained $4.79 per barrel (5.07%) last week on growing concerns about a disruption in crude oil production in Iran. Intermediate trend is up. Crude moved above its 50 day moving average last week and is approaching resistance at $100.62. Short term momentum indicators are overbought, but have yet to show signs of peaking.

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Gold gained $33.10 per ounce (1.88%) last week despite strength in the U.S. Dollar (an encouraging technical event). Nice bounce from near its 50 day moving average currently at $1,726.65. Short term momentum indicators are overbought, but have yet to show signs of peaking.

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…..more than 45 Charts analysed HERE