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Precious Metals and the U.S. Dollar (DXY):I keep thinking that the 3% plunge in Gold (GLD) and the near 5% plunge in Silver (SLV) are a liquidation event into the end of the quarter in reaction to last week's parabolic spike in 10-year YIELD from 4.93% to 5.23%. A risk-off reflex action ahead of the start of Q4...That said, however, I also think that Wednesday's PCE Inflation report for August is the next significant headline risk (reward) for precious metals. If PCE comes in cooler than expected, then YIELD and the Dollar should moderate and the PMs should catch a bid.
In Case You Missed It…This week we will need to delve deeper into the wave counts on several instruments covered in the Flagship and Nightly services. But first, a quick update on the major equity indexes:SPX gained approximately 93 points this week, forming what can be called a doji (indecision candle) on the weekly chart, on at average volume. SPX is still in an overall sideways trend from May but it may be compressing to the upside.SPX closed slightly above the Gamma Threshold level and the 50day moving average is holding as support.
As I said in my weekend update, I have been hoping for clarity. Yet, that is the last thing the market is providing to us at this time. Let me explain.Normally, when you have an (a)(b)(c) structure for a b-wave, the (c) wave takes shape as a standard 5-wave Fibonacci Pinball structure. And, within that 5-wave structure, waves 1, 3 and 5 divide in 5-wave structures themselves. This is what we call the fractal nature of the market, wherein movements are variably self-similar.
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