Breakouts

I can’t feign surprise at the market getting bid up right out of the gate this morning. It’s the New World Order. Looking at some ETFs, there are a few interesting areas of strength. One, broadly speaking, is commodities, although I don’t think the potential from here is substantial. I’ve tinted what I think is a reasonable target area.

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As I am typing this, the ES is down a tiny bit, and the NQ is up a tiny bit – – basically a snooze-fest. The emerging markets, however, looking fairly well-formed for a bullish base. As long as we don’t re-enter that cyan area, this looks like a solid buy.

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Precious metals are particularly strong today. Ever since last August, it has been carving out higher highs and higher lows. Maybe the public’s faith in central bankers isn’t infinite, eh?

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The next challenge for precious metals, I’d say, is represented with the arrow below. Miners have had a terrific run, but we’ve come all the way back up to an important trendline. This could represent a meaningful area of repulsion for further price advance.

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As a side note, cryptos have shaken off their doldrums. Yesterday we broke above the descending green trendline, and we’re very close to crossing above the psychologically-important $4,000 level. I don’t think we’ll ever come within several light years of the $20,000 peak again, but at least the battering of cryptos seems to have abated.

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