Lookin Good Canada! TSX update

AD line and NYSE

The AD line has made new highs. It has lead the NYSE and global equity markets in making new highs throughout this entire bull market.

Long the TSX (XIU.TO ETF)

I bought calls on the Canadian TSX index ETF, XIU. The chart below looks like we are going to break out of the range trading mode we have been in for the past month.

Volatility is ultra low and its back in uptrending mode. Also a buy signal was registered on momentum indicator.

Also Gold broke out today, Oil looked to be regaining a foot hold to head higher. Strong Oil and Gold prices are good for the TSX.

The weekly chart is also uptrending and volatility is reasonable low on it as well.

Gold

I have been long gold for the past two weeks plus, the trade started off very nicely and has since gone mostly sideways (a consolidation).

Finally today we see some strong life in Gld. The Euro takes a small break for a day and gold is up 1%.

While US dollar is going up, gold has been going sideways and actually mildy trending up making highers highs and higher lows as of late.

I tried shorting Silver when I first started this blog and that did not work out. We had a perfect scenario in place, US dollar strength and silver and gold both looking like they were heading south together. When that trade didnt work out I thought that there is likely inherent strength in the precious metals... so i looked at my signals and grabbed gold.

Not believing this sell off, yet

The $tick's low for the day isnt even -1000, i would atleast like to see that hit -1000 with this kind of selling. It can hit -1000, but it hasnt yet today. For this kind of selling pressure in the US market its hard to believe this sell off with a weak $tick reading.

Tons of buying support at or near the NYSE's current price levels.

Emerging markets are also arent even trading at a 10 day low with this selling.

My gut says this morning's move is over done, and anyone getting beared up right now might be too early.

But as always the market can turn and change ever so quickly.

I will post if I see any changes in buying or selling pressure intraday today.

Wont be shocked if NYSE closes near 7600.

NYSE Breadth / Support Resistence Update

Below is NYSE chart. We have two trendlines in play with the rally since the Feb lows. One is broken and was retested yesterday, the other is holding nicely. Both trendlines are rather steep. The trendline that is not broken will be around 7600 tomorrow. Also noted on the chart below 7600 is an important level on a closing basis on the NYSE. With trendline support and 7600 level support tomorrow I have to believe its gonna hold (Double support is usually a good bet.

In the mean time yesterday's strong breadth day kind of held, less than I would have liked to see. I noticed as yesterday's close didnt hold intraday it hit our 7600 level and turned around. Often when a key breadth level doesnt hold it goes to the next one.

7550 and 7600 are strong breadth levels and have been tough and will continue to be tough for the bears to penetrate.

Solid Turn Around, End of Day

Gold and Silver were strong today and that trade continues to look good. The market looked weak for a while there today but turned around nicely in to the end of the day. NYSE remains on a daily uptrend. Emerging markets looking weakest, but they had a nice end of day rally as well.

No need to short right now. I remain long GLD.