Turnaround Tuesday

By: Stock Barometer | Tue, May 27, 2014
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5/27/2014 5:47:59 AM

Good morning Traders,

I our view, there's a lot going on in the market, let's take a look and make some calls:

Every weekend, we get our last weekly data then update our research. This on the surface looks pretty bullish:

ECRI Weekly Leading Index Chart

But one thing I'll caution you on is the following:

ECRI Weekly Leading Index Chart 2

We're at a level where the 6 month future return is likely negative. We'll know a lot more when this indicator turns lower.

And as for the barometer, we have the market breaking out from the consolidation.

Daily Stock Barometer Primary System Chart

The question is will this market rally continue and is it worth playing? The fact that bonds are rallying with stocks is huge. While bonds tend to be right, if they reverse lower here, we'll see a much larger advance than most are expecting. One is right. And we'll generally only know in hindsight.

As for gold, I spent the weekend populating some of our blogs with arguments that gold is about to make a large move. We're positioning for it this morning in our gold options trader service. Here are a couple of those charts: Visit www.stockbarometer.com to learn more.

Gold versus Leading Indicator Chart

Gold Put/Call Ratio Chart

Gold Seasonality Chart

Gold Volatility Chart




Stock Barometer

Author: Stock Barometer


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