Inside Market Price Movements

- Hit the road, Jack and don't come back no more, no more, no more...

- Ray Charles

The song fits the current market. No one reaches a breaking point in a relationship just like that. There has to be a backstory. The volatility in the market is the same. We have addressed the backstory. The market is reaching its breaking point. Do not be misled. The long consolidation range within the market is set to make its conviction move. It could go up and then our call is wrong. It could go down and we gather your faith. We have seen in the battle between the bulls and the bears, market prices rise and fall. However, the charts and volume indicate what we see as its true intent. In addition, the recent volume has been low and cautious. We feel this is related to the debt situation. The market wants an answer.

King $Dollar

It seems to be falling every week. A closer look reveals that yes, it did touch a new low, but never closed at a new low. In fact, the dollar has a series of higher lows. In addition, it rallied last Friday in a strong upward rise. The test will be the 50-day moving average on the weekly chart and the 200-day average on the daily chart. We know a strong dollar will kill any market rally.

Gold

We have not touched on our favorite. You know that we oppose the Federal Reserve and its fiat money. Our belief is in Franklin and Jefferson with a strong currency backed by precious metals. Last week, gold touched a new, all-time high ($2085) before retracing. Gold had begun its attack on the $2000 level last year. Now, it is attacking a new high. Keep in mind, if the dollar rallies, gold and commodities fall. With that said, we see $2154 on the cards. Yay!

Silver

The other precious metal had a strange week. It formed a new high and then fell sharply. The happiness in gold is not complete until the two are in harmony. This is divergence. Boo!

Oil

It took a beatdown last week. It is hanging at its lows. This is never a good thing. If you add the fact that the price is below its two moving averages, and more unemployment claims, the outlook says it could fall to $57. We never like to bet against the most important commodity, but unlike the Federal Reserve, we always include it in our thinking.

$VIX

This index reflects the price action in the market. On a daily chart it says the market will rally. On a weekly chart, it shows higher lows like the dollar. Keep your eye on this index. Could it be the market tell?

Dr. Copper

Money can't buy health. Therefore, we always like a quick checkup with the doctor. It has been a long time since copper popped over $5. It was February of 2022. Since the beginning of this year, it has been in one long decline. It is below its two moving averages. We know the Biden infrastructure stimulus will help in our nation. So, we believe the low demand must be global, which is not good for the health of the doctor. Until next week, peace.