I would like to tell you what will happen next in the financial markets. No, seriously I really would. Unfortunately, my crystal ball is presently not functioning. In the interest of full disclosure I should mention that it never actually did work, unfortunately I stared into it for a long time before I figured that out. That was not a happy day. That revelation led me to establish:
Jay’s Trading Maxim #62: Predicting stuff is hard. Better to identify the current trend. If you can’t identify the current trend, better to take the day off.
As I have written about a lot lately (here, here, here, here, here and here) there are a lot of markets “at the crossroads.” So rather than wasting a lot of verbiage I’m going to save the 7,000 words and show 7 charts instead. As I alluded to above, I can’t tell you where all of the various financial markets are headed, but I can show you a pretty good way to find out.
Keep a close eye on the markets relative to their respective “line(s) in the sand”. Interpretation is fairly simple:
Price above red line = GOOD
Price below red line = BAD
All charts are Courtesy of ProfitSource by HUBB)
Figure 1 – U.S. Dollar
Figure 2 – Crude Oil
Figure 3 – S&P 500
Figure 4 – T-Bonds (TLT)
Figure 5 – Gold
Figure 6 – Coffee
Figure 7 – Soybeans
Summary
As far as what happens from here, you’re guess is as good as mine. But the point is that NOW is exactly the time to be paying close attention.
Jay Kaeppel
Disclaimer: The data presented herein were obtained from various third-party sources. While I believe the data to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information. The information, opinions and ideas expressed herein are for informational and educational purposes only and do not constitute and should not be construed as investment advice, an advertisement or offering of investment advisory services, or an offer to sell or a solicitation to buy any security.
