Whereas I was looking to buy a strong rally yesterday, the indices instead moved sharply in the other direction. It wasn’t enough to change my mind about the bullish outlook, however, despite the breach of certain key levels on some of the markets’ charts.
The Dow and the Nasdaq are my likeliest purchases for the next push higher. But I am not rushing to get back in. Today is payrolls day and I have a poor track record of getting it right around US jobs data. I’d sooner let the dust settle and then try and trade once more. If I am right about the bullish bigger picture, there should be plenty of upside to come and I am not worried about missing a couple of percent of it.
Click here for analysis of some leading equity indices.
Crude oil has suffered 20%+ corrections in each of the last two years, beginning around now. Is it going to be third time unlucky then? While there’s a decent chance that Brent will experience another summertime malaise, I doubt if it will necessarily be of the same proportions of its last two yearly declines. Brent is nothing like as toppy today as it was back on those occasions. It is perfectly possible, though, that it will come back to around its 55-week EMA ($112.48), perhaps testing a bit through it. That would qualify as a healthy correction, in my book, and set up the next leg higher here.
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.