Macro Week In Review: Gold Stayed Off A Fall

Last week’s review of the macro market indicators suggested, heading into the first full week of February that the markets have their bull on. Gold looks to have stayed off a fall and will consolidate while Crude Oil continues higher. The US Dollar Index is moving lower again and US Treasuries are joining it to the downside. The Shanghai Composite is racing higher again after some consolidation and Emerging Markets are biased to the upside but consolidating. Volatility remains near historic lows and showing no signs of rising elevated keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The weakening US Dollar and Treasuries support higher equity prices as well. And the charts of these ETF’s agree, with the QQQ looking to finally join the party higher. Use this information as you prepare for the coming week and trad’em well.

The week played out with Gold consolidating and Crude Oil also consolidating after a bounce off of resistance. The US Dollar ended its move lower and rebounded while Treasuries moved sideways at their lower level. The Shanghai Composite founds its next resistance and began another round of consolidation while Emerging Markets leaked out of their consolidation lower before finding support late in the week. Volatility leapt higher only to be pulled back down by the end of the week. The Equity Index ETF’s continued in their ranges until all broke out of them higher on Friday with the SPY and IWM making new multi-year highs, but maybe more noticeable the QQQ breaking a very long tight range. What does this mean for the coming week? Lets look at some charts.

Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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