Weekly Economic Update 02-03-2017

As markets opened all our buy signals were tripped, only to see 90 minutes later the sellers arrived. Gold has failed to break over the psychological $1,220 level six times and is forming a double top pattern. In market speak that means prices are more likely to fall. We really need to see strong volume and upward price movement, neither of which we are seeing yet. This puts us on hold day to day; the trades are ready to go. Perhaps I will get the pullback I’ve been looking for?

Time to celebrate – we are now in the third longest expansionary cycle in history that came with the weakest economic growth in history. There has been some good data on employment growth and from the manufacturing sector, yet consumer spending and wage growth remain weak. If spending doesn’t pick up soon, expect companies to back off the hiring trend.

Bonus Section: CPI index vs M2 Money Stock; S&P 500 volume analysis; support and price analysis for: 10-year Treasury yields, Gold, Gold Futures and Gold Miners, and Treasury bonds; Treasury bond volume analsysis; macroeconomic indicators; percentage of stocks trading above their moving averages; total put/call ratio; and charts from the recent Commitments of Traders report.