Watch For Currency Swings

Lots of internet information out there that is all over the map on the CoronaVirus. I don’t have a crystal ball, but watching what investors are doing can help provide ideas.

One of the things from the StockCharts article what to watch for in 2020 that I wrote about is the potential for the long trends in currencies to change this year.

 

These currency trends look like the breakouts are in the coming few weeks.

I also hosted a Canadian Technician Video about the differences seen in the breadth indicators for the various exchanges this week. That can be found here.

On the Market Buzz on January 27th, I covered off the commodities story. That story line has continued.

 

In the Market Buzz shows from last week and this week, we can use charts to help identify when investors are starting to buy up the names beaten down from the Coronavirus.

While the internet portends to be getting new information out to investors, it is hard to tell what is real and what is actual fact. When institutions start to buy up stocks, we’ll know the turn is coming.

 

Here is another one using the Shipping industry to help us out.

 

I also recorded this Video on the weekend talking about breadth and how it is different across the different indexes in the market. The breadth data can help us see what is changing in the flow of investing.

 

While the market is always rotating in some fashion, all these videos have one underlying theme. The breadth of the market is narrowing and only the largest large caps are working well. It is this potential downside that has me more concerned in the near future. Using the indicators and various breadth calculations, the market is hanging on, but could just as easily start to slip here. It is very finely balanced.

Try to keep your risk levels low this week as there is a tension with the momentums readings to be some of the highest in 10 years suggesting caution may be introduced by the large funds as they typically are not proponents of buying at extremes.

Good trading, Greg

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