MBO Issue 42 (Jun 2015) Neutralization of Stop Orders
Content
- Review
- Euro Down Trend Resumed
- S&P Breadth Readings Continue To Deteriorate
- Gold Weekly Down Trend In Full Force
- Big Picture Summary
Review
Euro consolidated between 1.12 to 1.14 as expected. It failed to close above Jan midpoint on weekly basis and sold off from the 3 pushes up pattern on 4 hours. Euro landed at my target of first quarter close / April midpoint zone.
S&P continues its struggle to maintain the current up trend as mentioned in last issue. It is still trapped in range with breadth readings continue to deteriorate.
Confirmed bearish gold weaknesses gave us limited upside potential. It was reflected in the failed push higher last month.
My prediction of wild swings has started. How often do we get 1.5% down one day in S&P and then 1.5% up the very next day?
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If GLD find support at the 112-112.25 area, we could have a retest of the 118 level by the end of June. Imo, gold shorts should tighten stops, since there is a risk of an upside breakout if 112 holds as support.