Technical Take on Various Asset Classes

The above chart shows the weekly asset performance. The damage is quite visible specially in the commodity space. Though DJIA was positive.

Let me state few things quite clearly right now

1. We have bear markets in stock markets across the world. In bear markets the way to trade is with caution and not greed. Bears know as well that bear market rallies are fast and furious. (I will discuss the primary issues we are facing in financial and monetary world elsewhere) 
2. Precious metals are the one of the few places that would save the wealth of anyone - primarily because they are in bull right now since cash is being debased no matter where you live and additionally gold and silver today dont carry counter party risk - essentially they get you out of the financial and monetary system. Hence - when and if the bank runs come in west, then the guys would atleast have the ability to feed the family and have assets outside the present banking system. Dont trade your bullion -- stay with it and invest in pullbacks or dollar cost average those who dont know the technicals. Dont trade - i say again.

Both SP500 and DJIA are now red for the year YTD. Infact Silver as well is donw 3% roughly for the year. Gold is up 14% saving grace. 

As said in earlier posts --- the series of lower highs and lower lows was not encouraging. Further to that we got a marubozu day in both SP500 and DJIA on friday with big down days. But bears need not be too happy. The horizontal support line below is intact for both the indices and until we close below them --- the action may remain sideways. So lets see how the next week pans out. The indicators though surely look like they are rolling over giving additional momentum to the bears. 

Gold and Silver after having been corrected are still healing technically. The hammer formed in Gold on daily with the shadow bottom at 200MA seems to be a support created uptil now. The process should continue over next few weeks and then Gold and Silver both should start moving higher. 

USD has closed the week very strong. Its been a favored asset class of late. Its trading above 200MA making higher highs and higher lows in swings. USD rushing up will probably put pressure downwards on other asset classes. JPY is the other one of the strongest currencies aginst USD and CHF has now father now--- is languishing.

Moving to the Indian market - Nifty in hourly has made a higher high with negative divergence. That divergence may lead it to first test out the retracement levels and then the bottom formed at 4750 levels. 

On a daily - Nifty formed a harami candlestick pattern. The stocs indicator if rolls over would ensure that price does not gain further. We still are in a trading range --- though the first half of the markets may be pressured because of the falls in US markets on friday. After that the market will try to find its own balance. 

On weekly stocs is in sell and price has formed a Doji. But since we are not trending the candlestick reversal patterns wont help us much. Hence we need to see the price action on Monday and afterwards to get any clues.