The US markets surged nicely yesterday, in line with my bullish call.
I was slightly unfortunate to have been stopped out of a Nasdaq 100 trade literally just before the spike higher began, although I did manage to catch some of the move via a Dow long position. I think there is plenty more to come here, however. The indices are nowhere near overbought on a daily view, which leaves plenty of scope for them to advance further. The Dow made a new bull-market high yesterday and it won't be long before the S&P and Nasdaq join the club. I continue to look to buy the intraday dips.
Click here for analysis of some leading indices.
I have to revisit this chart that I published on Monday showing the key time-cycle in the US dollar. I pointed out that day that the cycle was hinting at a low in the greenback, although I was not about to change my bearish view here, nor my bullish outlook on copper and oil. But the dollar has now reversed impressively, right in the timeframe suggested by this model, and I therefore need to take notice. For now, I am going to stick with my current stance, seeking to buy dips in the red metal in particular. However, I am shifting my view on dollar back to neutral from bearish for now.
Click here for analysis of some leading commodities.
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Dominic Picarda is a Chartered Market Technician and has co-ordinated the IC's trading coverage since 2006. He is a regular speaker at trading and investment events and also holds the Chartered Financial Analyst qualification.