Market Timing Brief for the 2-27-2015 Close: SP500 Index Breakout Still Intact. Gold’s A Buy. Rates Should Move Down. Will They?

A Market Timing Report based on the 2-27-2015 Close, published Sunday March 1st, 2015

I’m continuing with the terse comment format this week.  The rest is on Twitter®/StockTwits®.

The SPX has maintained its prior breakout.  See the purple line?  That line is an upward wedge line that was previously broken.  We must rise above that level to void it as a technical landmark.  The bullish argument is that the market has broken out to new highs, and we’d have to fall below the prior breakout at 2093.55 to void it.

SP500 Index (SPX, SPY; click the chart to enlarge it):

sp500-index-market-timing-chart-2015-02-27-close

SPX keeps its breakout.

To find out what I’m doing, including buys and sells, please follow me here: Follow Me on Twitter®.   Follow Me on StockTwits®   You don’t have to make comments yourself to read my messages.

Small caps have had a clean breakout.  They must hold it.  The valuation of the RUT is stretched almost to where it was a year ago (per Wall Street Journal stats).

Russell 2000 U.S. Small Cap Chart (RUT, IWM; click the chart to enlarge it):

rut-small-cap-russell-2000-index-market-timing-chart-2015-02-27-close

Small caps also have an intact breakout.

Gold appears to have found a base.  Buying here with a stop would be a reasonable trade set-up.  Given the massive money printing happening all over the world, gold should hold up for the time being.

The Gold ETF Chart (GLD; click to enlarge the chart):

gld-gold-etf-market-timing-chart-2015-02-27-close

Has gold found a base? Probably.

Please Click the TNX Chart to enlarge it (see related ETFs, TLT, TBT and UBT): Rates could be falling again.  There are those who believe that the Federal Reserve will raise rates a bit simply to come off the near zero level.  Rates abroad will continue to pressure U.S. rates to the downside.

tnx-10-year-treasury-note-market-timing-chart-2015-02-27-close

Rates should fall. Will they?

CONCLUSIONS: The U.S. stock market breakouts are intact.  Gold is a decent trade from here using a stop.  The recent Fed speeches are all aligned with a more dovish Fed policy despite their threat of moving the Fed Funds rate off zero.

I cover foreign markets on social media (see links above) and in my montly newsletter.  Note that the newsletter is now closed again to new subscriptions: Join the Wait List to Join the Newsletter as a Loyal Subscriber, Opening again for the April. 4th issue.  If you join and don’t read the newsletter, you will be deleted.  I don’t publish to non-readers as other newsletters do.  Stay tuned here in the meantime and follow all the action via the Twitter® and StockTwits® links above.

Be sure to visit the website at: Sun and Storm Investing™

Standard Disclaimer: It’s your money and your decision as to how to invest it.

I thank Worden Brothers for the charting system I use to post these charts.  If you want to know more about the charting system I use every day, go to my “Other Resources” page here:  Other Resources   It makes it much easier to follow along with me if you can see the charts and manipulate them on your own computer.  It’s a great investment to have an excellent charting system.  Check it out with a free trial at the link above.

Copyright © 2015 By Wall Street Sun and Storm Report, LLC All rights reserved.

Advertisements
This entry was posted in Bonds, gold, investment, large cap stocks, S&P 500 Index, small cap stocks, Treasuries and tagged , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s