Four Market Money Flow during the Stock Market Surge Jan 27
Fri, Jan 27, 2:11 PM ET, by Corey Rosenbloom
We know that US Stocks surged to new all-time highs this week as the Dow Jones broke above 20,000.
However, did you know what happened to Gold, Oil, and the US Dollar Index?
Let’s scratch beneath the headlines of the stock market to see fund money flow in our quad-market grid:
First, stocks traded sideways through January until this week’s bounce and breakout higher.
At the same time the stock market was sideways in January…
- Gold was surging toward $1,200,
- Oil was trading in a range but falling toward $52.00,
- and the US Dollar Index continued to trade persistently lower.
AFTER stocks broke out to new highs, the following occurred in these markets:
- Gold (a current “Risk-Off” market) fell lower down away from the $1,200 level,
- Oil (an economically-sensitive commodity) crept higher along with stocks,
- and the US Dollar Index continued trading lower, in fact reaching a new swing low toward 100.
Whether or not you trade these markets, it’s helpful to get a sense of what’s going on behind the scenes.
That’s what we do in our Intermarket Strategy and Planning report for you each weekend.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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