Monday Market Commentary - December 05, 2016

Stocks, Sell - The Dow Jones Index made new closing highs last Tuesday, Wednesday, and Thursday but with negative broad market participation breadth. The Dow could very possibly grind a little higher this week again. The other major market indexes have begun to decline with the Nasdaq getting hit the hardest last week. The bearish forecast still stands. 

Bonds, Buy Short-Term, Sell Long-Term - The current forecast for the 30 year T-Bond is to rally to the upside after its recent severe selloff after the election. Conversely, bond yields are setup to decline at the same time after their very quick and large rise. The 30-year T-Bond rally bounce should see 153 to 156 area or possibly a bit higher to 158, which would be another low-risk high-reward price area to sell short again at for the longer term.

US Dollar Index, Hold Short-Term, Possible Buy Long-Term - The US Dollar Index consolidated last week after hitting a high of 102.05 on November 24th. Near-term support is 99.695 to 99.960. Longer term support is at 96.00. The potential exists for a much stronger US dollar longer term. If 96 breaks support, this bullish longer term forecast would be in question and the forecast could then turn bearish longer term.

Gold & Silver, Buy - Gold continued to grind a little lower last week with a slight upward bounce Friday closing at 1,175.58. Sentiment is extremely negative currently. The forecast short-term is higher, and possibly longer term too after seeing and reviewing further daily price action. A buy long position in gold and silver with a proper stop-loss would be a low-risk high-reward trade if it works out.