Major indexes not in sync

The three major indexes I monitor to check a general market trend are in different positions. S&P500 is the most positive and Russell Small Cap is the most negative

It means that it is not a good situation for very active trading. The best way is to be very selective and pick only the best stock and ETF opportunities for a trade. Remember “Cash is also a position”.

20140503_SmallCapRussell_chart_analysis_from_simple-stock-trading-com 20140503_NasdaqComposite_chart_analysis_from_simple-stock-trading-com 20140503_SP500_chart_analysis_from_simple-stock-trading-com


S&P in positive position

The S&P500 index holds its gains above the 50-day moving average. It points to more bullish mood. Nasdaq is much weaker and returned back below the 50-day moving average. It is in neutral position. The weakness of Nasdaq will not allow S&P stocks to advance so rapidly.

You should pick individual stocks to make the best and the most profitable trades.




Gold bearish again

Gold has broken correction support line and finally moved under the 200-day moving average again. It points to further decline in the price of gold. It is possible to trade it using ETFs (like GLD) or gold futures or spot gold on Forex market.


I have already opened Silver short sell trade (using silver ETF SLV) as silver is weaker than gold.

S&P recovered to positive position

S&P500 index recovered during a last week and is now in a positive situation again. Nasdaq is weaker and barely retraced its decline. It means that Nasdaq tech stocks should be seen as short sell opportunities and S&P stocks, especially in strong sectors, should be seen as buying opportunities.



Major US markets in a decline

Both major indexes, the Nasdaq and S&P500 are in a decline. As I mentioned in my bi-weekly newsletter, Nasdaq is a leader in a decline and pushes also S&P500 index below the 50-day moving average. I expect that the Nasdaq will reach its 200-day moving average located near at 3900 soon.





I do not want to buy Nasdaq based (technology) stocks these days.  They are good option for short sell strategies.


Commodities – bullish chart pattern

Commodity based ETF DBC forms a bullish chart pattern. If it will manage to break above the top resistance line, it can start a new uptrend move. Especially several agricultural commodities are bullish – DBA, CORN –  but also UNG or URA could offer a bullish trading opportunity soon.