Other markets on May 18, 2018: outlook


Here are my discretionary thoughts on forex, commodities, bonds, and cryptocurrencies. I only trade the stock market.
Go to the homepage for my latest thoughts on the markets.

Thoughts

  1. The gold:silver ratio has been trending lower since April. A medium term bullish sign for precious metals.
  2. Bitcoin was solidly rejected by its 200 daily moving average. Still in a bear market. Next target $6500.
  3. The U.S. Dollar is on going up to its 94 resistance. Short term bullish.

4 am: The gold:silver ratio has been trending lower since April. A medium term bullish sign for precious metals.
The gold:silver ratio has been trending downwards since the beginning of April because silver has outperformed gold.

This is a medium term sign of bullish price action. This supports the case that once gold and silver get over their short term weakness, they will make a medium term rally.
4 am: Bitcoin was solidly rejected by its 200 daily moving average. Still in a bear market. Next target $6500.
Bitcoin has turned its 200 daily moving average from support into resistance, which is typically what happens during bear market continuation patterns.

Bear markets have lower highs and lower lows. This means that Bitcoin’s minimum downside target is $6500 (previous double bottoms).
4 am: The U.S. Dollar is on going up to its 94 resistance level. Short term bullish.
The USD Index continues to trend higher to its 94 resistance level, as expected. I’m short term bullish on the USD.
Forex is an interesting market. It sideways for most of the time, but once a trend emerges, traders all crowd into the same trend. The herd mentality in forex is amazing.

Read Other markets on May 17, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts and outlook on other markets.

  1. Gold and silver are in bull markets.
  2. I’ve decided to buy some gold and silver as long term investments.
  3. The U.S. Dollar is in a bear market.

bitcoin’s rising trendline support

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