The Short-Term Trend - Thursday, June 1
The market was looking very weak yesterday, but bounced back today with strength.
The number of new lows pulled way back into the safe zone. So, instead of raising cash today as I was planning, I was deploying cash back into the leading areas of the market.
The cumulative AD has been the superior indicator.
Rates
Strength in Emerging and European currencies indicates that we should continue to broaden our holdings to include foreign ETFs (except Australia and Canada).
I am not so sure about commodities. They continue to look weak, so I am would avoid commodity-related stocks and ETFs. However, there is a tiny bit of strength in precious metals, and with the US Dollar so weak maybe gold shares are worth a look.
Gold is looking like a series of higher highs and higher lows is developing. Also, gold is outperforming the dollar, and has a good-looking volume indicator.
It is odd, though, that the gold miners are not outperforming gold. Maybe the people who buy these shares got whipsawed last year and are overly cautious?
Or, maybe the dollar is bottoming out and is ready to run higher which would push these shares down?
The Leader List
Semiconductors and India are back in the leader list. Both have been in and out several times over the past few months.
There was a lot of strength today in a number of areas.
Materials looked really good today, and may be just beginning another break out of a base that started in January.
Mid caps seemed like they were going to break down just a few days ago, but now they look a lot better. BTW, a weak dollar is bad for these shares.
Strength in the dollar? I don't see it, not yet anyway.
Disclaimer: I am not a registered investment advisor. My comments above reflect my view of the market, and what I am doing with my accounts. The analysis is not a recommendation to buy, ...
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