https://thegoldandoilguy.com/wp-content/uploads/2019/09/30-1.png 470 850 admin http://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.png admin2019-09-10 10:45:332019-09-10 10:45:33Sector Rotation Giving Mixed Signals About The Future
Sector Rotation Giving Mixed Signals About The Future
It seemed the markets wanted to make a point to alert us that volatility may be here to stay very early in trading this week. After a fairly flat overnight session with very little price volatility, the markets opened up to a moderately large price rotation (first downward, then back higher) before settling into a broader downside move in the early afternoon in New York. The interesting facet of this move is that it seemed to be related to price valuations and expectations in certain sectors. Before we get into the details, be sure to opt-in to my Free Market Forecast and Trade Ideas Newsletter so stay on top of these market moves. As we’ve been suggesting for many weeks and months, we are not out of the woods quite yet. The US markets may be subject to more price volatility than we have considered while the continued Capital Shift (foreign capital pouring into the US markets) may also be shifting. One thing is certain, now is not the time to try to set up positional trades in the market expecting longer-term price trends to set up and run over the next few months. This appears to be a traders market where skilled technical traders will shine by finding opportunities and executing very skilled and targeted trades for profits. Many months ago we authored an article about the US Presidential election cycle and how that event plays into market uncertainty and price activity. We are currently entering the prime span of time where price rotation and volatility because of this election event should take place. This “price malaise” typically happens about 16 months before the election date. As we move closer to the elections, the markets typically become much more volatile and enter a period where the price tends to consolidate near recent lows or establish moderate new lows as attention shifts away from the economy and towards the election news. If you are serious about trading, this is when you want to pay very close attention to the various market sectors and understand that opportunities may be very short and sweet for profits.