• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Will the Fed Make Gold Shine?
Stock

Will the Fed Make Gold Shine?

by May 3, 2023
by May 3, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Stocks began the day weak — weaker than most traders probably realized. As you can see in the intra-day chart below, short-term momentum, as measured by Real Motion, had rolled on Monday. As a result, when the SPY broke its 30-minute Opening Range low (as shown in the chart below), it accelerated lower.

The pattern to notice in the chart above is the divergence in Real Motion’s two moving averages vs. the same moving averages in the price chart. The day began with the Real Motion averages negatively stacked (the 50 in blue, under the 200 in green). The is weak momentum, even when the price moving averages aren’t negative (yet). When this divergence occurs, Opening Range breakdowns tend to follow through, as happened today.

Today was particularly bearish, as there were good reasons for stocks to be under pressure. Regional banks broke down to new year-to-date lows, and the crude oil ETF, USO, had its biggest down day since July 2022. This dragged down energy stocks and stoked fears of economic slowdown. Adding to the uncertainty, the Fed will make its interest rate decision tomorrow.

Flight to safety and worsening fears of economic slowdown were confirmed by the big rally in the long bond ETF, TLT. Tomorrow, gold may be the biggest mover. Gold is often referred to as the asset that rises and falls with inflation, but gold’s favorite time to shine is in periods when markets lack confidence in the monetary system.

Today, the market’s mood with respect to the regional banking system went from bad to worse, as exemplified by the action in the KRE and the XLF. Tomorrow, the Fed will likely raise rates again, which is expected. However, if Chairman Powell’s remarks create a further loss of confidence in the Fed’s ability to navigate the worsening banking crisis, economy, and inflation risks, the weekly gold chart (below) is ready to shine.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

IT’S NOT TOO LATE! Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish discusses the FOMC and which stock she’s buying, and when on Business First AM.

Mish covers strategy for SPY, QQQ, and IWM.

Mish and Nicole Petallides discuss cycles, stagflation, commodities and some stock picks in this appearance on TD Ameritrade.

Mish talks movies and streaming stocks with Angela Miles on Business First AM.

Mish and Charles discuss zooming out, stagflation and picks outperforming stocks in this appearance on Making Money with Charles Payne.

We all know at this point how difficult the market has been with all of the varying opinions regarding recession, inflation, stagflation, the market’s going to come back, the market’s going to collapse – ad nauseam. What about the people stuck in the middle of a range bound market? Mish presents her top choices for shorts and longs on the Friday, April 21 edition of StockCharts TV’s Your Daily Five.

Mish and Benzinga discuss the current trading ranges and what might break them.

Mish discusses what she’ll be talking about at The Money Show, from April 24-26!

Mish walks you through technical analysis of TSLA and market conditions and presents an action plan on CMC Markets.

Mish presents two stocks to look at in this appearance on Business First AM — one bullish, one bearish.

Mish joins David Keller on the Thursday, May 13 edition of StockCharts TV’s The Final Bar, where she shares her charts of high yield bonds, semiconductors, gold, and regional banks.

Mish joins Wolf Financial for this Twitter Spaces event, where she and others discuss their experiences as former pit traders.

Mish shares her views on natural gas, crude oil and a selection of ETFs in this appearance on CMC Markets.

Mish talks what’s next for the economy on Yahoo! Finance.

Mish joins Bob Lang of Explosive Options for a special webinar on what traders can expect in 2023!

Rosanna Prestia of The RO Show chats with Mish about commodities, macro and markets.

Coming Up:

May 2nd-5th: StockCharts TV Market Outlook

ETF Summary

S&P 500 (SPY): 23-month MA 420.Russell 2000 (IWM): 170 support, 180 resistance.Dow (DIA): Over the 23-month MA-only index.Nasdaq (QQQ): 329 the 23-month MA.Regional Banks (KRE): 43 now pivotal resistance.Semiconductors (SMH): 246 the 23-month MA.Transportation (IYT): 202-240 biggest range to watch.Biotechnology (IBB): 121-135 range to watch from monthly charts.Retail (XRT): 56-75 trading range to break, one way or another.

Geoff Bysshe

MarketGauge.com

President

You Might Also Like
  • Why Were Chinese Stocks Up 20% Last Week?!
  • Week Ahead: Uptrend Stays Intact For NIFTY; RRG Shows Distinctly Defensive Setup
  • Week Ahead: NIFTY Stares At Scaling New Highs; These Sectors May Relatively Outperform
  • DP Trading Room: The “Magnificent 7” Mega-Caps
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Brace Yourself: The Debt Ceiling is Now on the Horizon
next post
AI requires ‘new generation’ of arms control deal to govern future warfighting, says Marine veteran lawmaker

You may also like

The Largest IPO In 2 Years Launched Last Week –...

September 16, 2023

We Called the Pullback

April 21, 2023

The Fourth Bitcoin Halving Is Upon Us: Is Now the...

March 29, 2024

Blow-Off Top?! Market Reacts to the FED Announcement

December 14, 2023

Week Ahead: NIFTY May Continue Finding Resistance At Higher Levels;...

April 6, 2024

Are ARK’s Innovation ETFs on to Something BIG?

December 7, 2024

Will the Generals follow the Troops?

March 24, 2023

Is Peloton Stock the Next Big Turnaround? What You Need...

August 23, 2024

This Housing-Related Stock Just Printed a 5 for the Trend...

August 24, 2024

From Selloff to Surge: Growth Stocks Rebound After CPI

January 12, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Halftime Show: Sharing “Secret” Chaikin...

    January 30, 2023

    Why Buy DBA: Agricultural Fund ETF?

    March 28, 2023

    Two Key Groups Take a Turn...

    September 19, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here