Stocks preparing to lift? ($spx)

Model Notes: The stock model seems to be still in sync with the underlying market. We are well north of the entry TSP. Today’s strength may be signaling the pause is over and higher prices lay ahead. The systems struggled on the gold front. Initially, the models thought the yellow metal was going to trend up, but now have it as non-trending. If you think about it, GLD prices are about where they were a month ago. I think the gold model is now in sync.

March Rotations: Core Gold, Featured: S&P 500 (I am now keeping the March markets for April).

Model Portfolio Signals: GLD flat on 4/1 (TSP=116.15), S&P 500 buy on 3/08 (TSP= 1989.26)

Note: TSP is calculated by using the closing price of the trading day after the signal day. It is more realistic for trading calculations/evaluations.

Nonlinear Trading Themes:

  • CTM160412gGold Trading Signals (Mar. and Apr. core market) Last week’s monster reversal day (April 7) featured limited follow-through buying this week. GLD seems to be finding resistance around 120. I wonder what would happen if interest rates started to tick up? Anyway, the models are advising neutral so flat continues to be the rule of the day.
  • CTM160412sS&P 500 Trading Signals (Mar. and Apr. feature): The S&P 500 is stair-stepping its way forward. Today’s strength may foreshadow some upward motion. Earnings concerns are not helpful here. The trend is still up and the models are looking higher. Prices. Are we ready to march to 2100, finally?

Note: Market comments feature technical analysis to discuss underlying market trends defined by nonlinear models.

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GH Garrett – Chief market analyst for  © 2015-2016, “Nonlinear signals that matter in gold (and wheat)  trading.”