Chart Signs

- All that glitters is not gold.

- William Shakespeare

Market and Life Signs

July is historically the second best month for the market after November. It stated with fireworks that ended in a dark, fuzzy, hazy cloud. The Bulls will say the market drop at the end of the month is just a normal correction. They have ammo in the S&P. It is over its 50-day average. Don't be fooled!

The market rally like we stated before never included the Transports. In fact, the transports are below both the 50-day and 200-day average. Chart patterns tell a truer picture. A bearish engulfing candlestick appears on the SPX on the final trading day of July. This says the elevator is going down. We see 6,000 and then, we will check the chart and volume. The Dow has fallen from Tuesday to Friday with volume. We see 42,000. The Transports are looking at 14,200. All three of the indexes have gaps and we see them being filled.

King $Dollar

It always needs to be watched. It rose with trade news. This was a head fake. The dollar hit resistance of 100. Then, on Friday, it also showed a bearish engulfing candlestick. It fell like a rock. We see it testing 96 again with the danger of piercing this support level. All that glitters is not gold.

Gold

Speaking of the precious metal, things are not looking good. Although it rose a lot on Friday, it had the dangerous three black crow pattern prior. This is extremely negative. The rally on Friday could be a head fake?

Last Chance

If we are correct with the three black crows, gold could fall to $2990. This is good news. For those who never got in for whatever reason, this is your chance to acqire some AGI, AEM or B. For those who have mining stocks, don't fret. You made the right call. Now, you can get more on the cheap because $4,000 and more is coming and very soon.

Trump Being Trump

Just like he fired Musk for saying something that he does not like, Trump fired the person at the BLS on Friday for giving a bad report on the economy. Trump also took it to Brazil with a 50% tariff hike for not treating Bolsonaro better. Immediately, large US firms like Exxon and Dow Chemical were on the phone to remind the president how the Brazilian chemical firms are closely connected to US companies. Chart and life signs... Peace.