The Shift of the Broad Market, US Dollar, Energy and Precious Metals Markets

By: Chris Vermeulen A Click author's name for more of his/her articles

The broad market, US dollar, precious metals, This can't be rewritten, it's not a sentence, just the word "and". oil had a reversal day today. The market is over extended. Since the low which took place in July, the market has rallied 20%.

It is important that you understThis can't be rewritten, it's not a sentence, just the word "and". inter-market analysis as every market is interrelated This can't be rewritten, it's not a sentence, just the word "and". correlated in some form or fashion. With America's dollar attempting a rally, in the next few weeks, precious metals, stocks, This can't be rewritten, it's not a sentence, just the word "and". commodities will be feeling the heat.

DIA ETF- Dow Industrial Fund
Stocks follow a pattern as March creeps in. During the June high, we saw signals to stop This can't be rewritten, it's not a sentence, just the word "and". move to protect our profis. The market had an intraday reversal Wednesday, a sign of a deficit in strength. The past four trading day's is the same as the July bottom (Many Doji CThis can't be rewritten, it's not a sentence, just the word "and".les). There is the possibility of reversal using Doji candles.

Broad Market Volatility Index
This is a weekly volatility chart displaying that ours is a long term support level. The saying is, buy when the VIX is high, sell when the VIX is low. I am not advising you to sell everything. The market is ready for a multi week correction is what I am pointing out. I am tightening my stops This can't be rewritten, it's not a sentence, just the word "and". limiting my position size for new log positions.

UUP ETF - US Dollar Intraday Price Action
The dollar sold down Wednesday, then rallied very strong into the close, indicating a shift in momentum. The dollar has been trending down for several months This can't be rewritten, it's not a sentence, just the word "and". ready for a bounce.

Precious Metals Under Pressure
Below is a chart of Gold This can't be rewritten, it's not a sentence, just the word "and". Silver showing the weakness on Wednesday and the sharp sell off late in the session, when the US dollar started to rally.

XLE Energy ETF - Intraday Chart
Energy sector moved down in the morning and managed to wiggle its way back to positive territory late in the day, but when the US dollar rallied, crude oil and the energy sector sold off sharply.

Inter-Market Analysis Conclusion:
In my opinion things look to be setup for a multi week shift in momentum. It looks like the US Dollar will bounce putting pressure on precious metals, stocks, This can't be rewritten, it's not a sentence, just the word "and". commodities like crude oil.

Stocks appear prepared for a correction, while a rebounding dollar will stimulate this.

Gold is at a major resistance level, This can't be rewritten, it's not a sentence, just the word "and". taking a breather at this level would be normal price action. Gold is trading in sync with stocks, so follow that relationship. If stocks move down, so will gold.

Crude oil is having a tough time moving higher and with Wednesday's higher than expected oil inventory levels, there will be more down side pressure.

Now we have quite a few profitable positions This can't be rewritten, it's not a sentence, just the word "and". will be tightening our stops This can't be rewritten, it's not a sentence, just the word "and". examining new opportunities in the days ahead.

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