Thursday Market Commentary - January 19, 2017

Stocks Hold to Buy Near Term - The major market indexes continue to consolidate and the current forecast is to head higher in the near-term, although with overbought conditions, and highly positive sentiment psychology which would suggest a correction of some amount is coming. For the time being the forecast is higher.

Bonds Hold to Buy Near-Term - The 10 and 30 Year T-Bond forecast is higher near-term after the extreme sell-off after the election. Long-term the forecast is down, but no clear low-risk high-reward sell signal is seen yet.

US Dollar Index Neutral to Buy Near-Term / Possible Long-Term Buy - The US dollar index hit 100.26 then made a reversal closing higher by the end of the day yesterday suggesting the index has completed a near-term downside correction, and is ready to continue higher again with a forecast to new highs. Current market price is considered to be a low-risk buy long entry area with a stop-loss of 100.26. If 100.26 price support gives way this buy long trade recommendation is canceled.

Gold Silver Hold to Buy Near-Term / Possible Long-Term Buy - Gold has pulled back off its recent high price of 1218.90 on January 17. Major support still stands at 1122.98. Look for potential pullbacks to 1195.19 - 1170.52 area to place new low-risk high-reward buy long positions. The potential for a bullish continuation could see gold go to 1377.50 or higher that was reached on July 06, 2016.