Momentum continues unabated in the US and in doing so has dragged us into some new long trades. We had been long SBAC which broke higher nicely last night. We also added FTI, ISIL, SLAB and TXRH. Some ongoing slippage shows that the market is still a little fickle and illiquid so care is needed. Our Daily Trend filters have finally turned up on the US which offers more confidence that perhaps we really have started the bear market rally and that gains will be sustainable for some time. With that trend up we can only consider long positions but retain low risk.
On other trades we’re seeing action in numerous commodity and commodity based ETF’s. Personally I have been long SLV, IAU and Brazil, Last night I added Copper by way of JJC and today I have signals for Taiwan and Malaysia. These are not commodity based markets but Asia ex-Japan has been a world leader for some time with respect to GDP and growth. Its interesting that these ETF’s are breaking out of longer term basing patterns and signaling long positions on some systems.
Lets see how this strength mainatins itself.
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