Each week I review the current market type and fundamental considerations on a variety of stock and commodity indices. Market type analysis is critical to trade planning.
MT = Market Type ( See lesson 8 in the Share Investing Course for Smart People)
- US Dow Jones – MT is sideways normal. Stay clear for now.
- US S&P 500 – MT is sideways normal. As above.
- US Nasdaq – MT is bull normal. But may be about to enter a sideways MT. Prefer to wait.
- US Russell 2000 – MT is bull normal. But be wary as it is correlated to the other US indices. The reason for the current out-performance is there is less exposure to the strengthening dollar amongst small caps as they operate more in the domestic market.
- UK 100 – MT is now bull normal. Look to buy with caution. Short term signals are pointing lower
- Europe 50 – MT is bull normal. Bearish reversal week signaling an end to the strong bull. Take some profits here. Watch for a bullish reversal on the daily charts this coming week as an opportunity to buy the dip in a bull normal MT.
- Germany 30 – MT is bull normal. As with Europe above.
- France 40 – MT is still strong bull. continue to hold.
- Italy 40 – MT is normal bull. Take profits and trade with caution.
- Spain 35 – MT is normal bull. Same here.. very bearish reversal week, but look for the market to buy the dip in this QE induced bull.
- Swiss 20 – MT is strong bull. Holding on to the strong bull for now…
- Netherlands 25 – MT is strong bull. But a reversal pattern has formed which gives us an early chance to take profits.
- Japan 225 – MT is strong bull. Hold. Just holding on here, but we could see follow though on Monday that ends the current strong bull.
- Honk Kong 33 – MT is fast bull. Last weeks advice was to hold with tight stops. Take profits here, as we are getting the rapid reversal often seen in a fast bull.
- Singapore 30 – MT is just bull normal. Some bearish short term signals advise to stay clear for now.
- Australia 200 – MT is sideways normal. Shorter term signal turning bear. Advisable to take some profits and stay out for now.
- Gold – MT is sideways normal. Careful longs preferred.
- Gold vs EURO – MT is bull normal. Look to buy.
- Silver – MT is sideways normal. Stay out.
- Silver vs EURO – MT is turning sideways normal. Stay out.
- Copper – MT is bear volatile. Big pin candle on the weekly chart giving a sell signal, but there has not been follow though. Trim shorts.
- Brent Oil – MT is bear volatile. Prefer to stay out, but we are getting a reversal and shorter term signals are bullish
- WTI Oil – MT is bear volatile. As above, short-term signals are bullish, and a double bottom is now in place. Fundamentally I suspect we have not seen the low in oil… but trade what is in-front of you.
- US 30 year Bonds – MT is fast bull. Hold.
- US 10 year Bonds – MT is sideways volatile. Wait.
- German 10 year Bonds – MT is strong bull. Hold.
- UK 10 year Bonds – MT is volatile bull. Prefer to wait now.
About the Author
Sam Eder is the author of the Share Investing Course for Smart People. He is the founder and head trader at market beating stock investing service SpoonFed Investor. If you like his writing you can subscribe to his newsletter.
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