Global Seven

05 November 2013

SHORT TERM COMMENTS UPDATED NOVEMBER 5

Last Tuesday I wrote that "I expect the US dollar to be strong over the short term with the Brasilian real likely to be one of the weakest currencies."...and we have seen the dollar strengthen...today I want to show you the US 30 year Tbond which is going the opposite way to the dollar...check out 

 

SCORECARD (Medium Tterm Vew) UPDATED AS AT FRIDAY November 1

EUR +6,  GOLD +5, DJIA +4, CRB INDEX +3, TBOND +2, USDX +1, CRUDE 0  ....difficult to believe that GOLD is at 5 beating all except EUR when it is not that far off its lows.

Comparative Performance Against Strongest

Sectors measured against the strongest (EUR):FALLING> CRUDE 99, CRB INDEX 55, DJIA 18, GOLD 0, TBONDS 0, USDX 0

Comparative Performance Against Weakest

Sectors measured against the weakest (CRUDE): RISING<  GOLD 1, USDX 1, DJIA 1, CRB INDEX 1, EUR 100, TBONDS 1

Medium Term Trend, 5 week Direction Indicator (DI) and 34 week Overbought (100)Oversold (0) Indicator (OBOS)

USD INDEX   trend falling ...DI declining...OBOS indicator falling 1.8...might need to close shorts
CRUDE            trend falling...DI declining...OBOS indicator overbought rising 99.9...stay short
DJIA               trend rising ...DI rising...OBOS indicator now declining 43.4 which could be big divergence
CRB INDEX    trend falling...DI declining ...OBOS indicator rising 98.5
EUR                 trend rising...DI rising...OBOS indicator overbought 100...RSI diverging...slooking to sell
TBONDS          trend declining...DI declining...OBOS indicator oversold 0.0...waiting for a buying opportunity?
GOLD              trend reversing up... DI rising...OBOS indicator rising 6.2...buy short term dips

 

 The information contained on this website must be viewed as educational...no trading advice is intended. Global Seven has 7 components and they are measured against one another ...on the Scorecard a score of +6 means that the sector in question is stronger than the other 6...and 0 means that that sector is being beaten by the six...Comparative Performance Against Strongest shows the position of the other components as they fall with 0 being oversold ...conversely Comparative Performance Against Weakest shows the performance of the other componenets as they rise with 100 being overbought...for more information on how the model works click on to www.investrac.com/welcome-to-investrac Keep in mind that the system is based on daily data so is only valid for short term movements. And keep in mind this good advice from Grant Williams: "Tune out the noise and focus on the signal." You can be advised whenever a new blog is posted....just complete the "Contact US" tab.