The ORD Oracle, May 22, 2017

Tailwinds’ Take: The ORD Oracle has a long track record of making investors money in Gold and the S&P. Here’s his latest piece.

SPX Monitoring purposes;  Long SPX on 5/17/17 at 2357.03.
Monitoring purposes GOLD: Short GDX on 5/22/17 at 23.20.
Long Term Trend monitor purposes: Neutral.

This coming weekend is memorial weekend and markets are closed Monday.  Markets around holidays can produce reversals as volume drops into holidays.  Volume drop on rallies is usually a bearish development and a drop in volume on declines is usually bullish.  Therefore, If SPY is at new highs going into Friday and volume is dropping, we may step out of our long SPX position.  The chart above is the VIX which normally moves opposite of SPX.  Today’s rally in SPX produced a decline in the VIX which suggests SPX should move higher.  Long SPX on 5/17/17 at 2357.03.  follow us are twitter. @OrdOracle

The second window up from the Bottom is the NYSE McClellan Oscillator.  With today’s rally the McClellan Oscillator closed above “0” near the +28 range and a bullish sign.  Next window up is the 50 day moving average of the tick.  When the 50 day MA tick is rising, its a bullish sign for the market and it appears to have turned up last Thursday.   So far it looks like the “Three Drives to Top” pattern that we have been discussing in our reports is still in play.  Short term new highs is possible.

GDX/GLD ratio leads the way for GDX, and GDX/GLD ratio is weaker than GDX suggesting GDX will decline soon.   Last Thursday GDX gapped down and produced a “Sign of Weakness” (decline on large volume) and a bearish sign.  On today’s trading, last Thursday’s gap was tested on lighter volume suggesting the gap has resistance and another bearish sign.  It appears GDX up-trend may be ending.  Short GDX on 5/22/17 at 23.20.