Douglas Gammons | TalkMarkets | Page 31
Retired
Contributor's Links: HeadlineCharts
Retired software engineer turned writer/investor and owner of HeadlineCharts. I am not a registered investment advisor. My comments reflect my view of the market, and what I am doing with my accounts. The analysis is not a recommendation to buy, ...more

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Wednesday - The Medium-Term Trend
My guess is that something will happen just when we all get too comfortable and stop watching. Or when we re-deploy cash because we just can't stand listening to the next door neighbor talk about the fortune he is making.
The Longer-Term Trend Is Positive
The 50-day average of new 52-week highs has stalled a bit and shows a lower high. Do we have the beginning of another negative divergence? It doesn't look too bad yet. Maybe more of a short-term issue to be resolved soon.
Friday - Sentiment
Sentiment is too bullish. The consensus point-of-view is "bullish long-term, cautious short-term". The fact that everyone is cautious short-term seems to be working in favor of higher stock prices at the moment, from a contrarian point-of-view.
Thursday - Commodities, Currency
The US Dollar looks weak, but not as weak as it was last year. Dollar weakness favors commodities, so I think this means the dollar still favors higher commodity prices and commodity-related stocks, but just not as much as it did last year.
HeadlineCharts - Monday - Sector Strength
Leadership from small caps, transports, semi-conductors, financials, emerging markets. It all points to a growing economy, moderate inflation, and a healthy bull market.
Saturday: The Longer-Term Trend
The long-term moving averages show the market in an uptrend after a brief downtrend late 2015 to mid 2016. A false signal maybe? If it is, it is only one in twenty years.
Will The Inflation Pressure Be Strong Enough To Push Commodities And Commodity Stocks Higher?
The US Dollar is gaining strength while the other currencies remain weak. This is the scenario that existed for most of 2014-2015 when all commodities and commodity-related stocks underperformed the market.
HeadlineCharts - Saturday- The Longer-Term
Bullish sentiment is red hot. It signals caution medium-term. But this excessive bullish sentiment isn't yet undermining stock prices.
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