Here it is the weekend Round Up. I wanted to take a look at the S&P 500 to get a frame of where the overall market is. In the chart below you will see the S&P500 has been in a irrefutable uptrend since the end of November 2011 as outlined by the green arrow and passing mid 2011 highs. Stochastics which is a indicator that measures overbought (the dashed 80 line) and oversold (the dashed 20 line) stocks or indexes shows the S&P being over bought and staying over bought so to speak indicating a strong demand for the index even at higher prices.
Another indicator that is important to this analysis is volume. There are two things to take note of here. First thing is that there are more green volume days (representing days of buying) than there are red volume days (representing days of selling). The second thing to note is that the red volume or selling days are mostly on below average (i.e. below the blue average line) and the green buying days have been on average or above average volume. These are the types of analysis you want to be engaged in to determine if we are in a strong uptrend market and should be looking for bullish trades or if the market appears as if it is topping by decreasing volume or more red days. So far there appears to be nothing wrong with this uptrend but always do your own homework and keep an acceptable stop loss.
Briefly I wanted to post chart and talk about the Gold sector. There was an article by Dan Fitzpatrick that talked about Gold being oversold and at good levels to buy. Below is a chart of Gold sector.
From the chart you can see Gold is breaking out of a volatility squeeze. all I want to say here is keep your eyes peeled for some potential up and coming gold trades.