6 Reasons I am STILL Bearish | SchoolOfTrade Newsletter 09/24/14

·       Gold trading SHORT continues to make us profit

·       Fundamental:  The Euro move to new yearly lows today after another disappointing news report from Europe (German IFO), which pushed the Dollar-index to new 4-year highs and Gold had no choice but to move lower in correlation.  We are watching the ECB and Beijing closely right now because if they signal more ‘stimulus’ for their struggling economies we will most likely see a sharp RISE in Gold futures.

·       Fundamental:  A strong US-Dollar, combined with a very weak economy in both Europe and Asia is causing major concern over DEMAND and consumption of Crude Oil and the price of Crude Oil Futures have tumbled in reaction to this.  On a more bullish note, the US began new aerial missile attacks on the ISIS group in Syria, and this potential unrest in the Middle East may result in a more bullish market-sentiment in the coming weeks.  We will be watching this closely, as of this time nothing to worry about for sellers on Crude Oil.

·       Fundamental:  The Mini-Russell has been trending higher all year of 2014, but last week we found new concerns about the struggling economies in Europe and Asia, and it appears that small-cap investors have taken ‘profit’ on their Mini-Russell positions and price-action has tumbled off the highs.  Remember, the E-Mini’s love to follow each other, and the Mini-Russell is lagging WAY behind the Dow and the S&P, so we are long-term still bullish but in the short-term it is very clear that profit taking has been the cause of this short-term pullback on the chart.