In what was a recovery week for the stock market, there were a few interesting moves in the sectors that suggest one of the trades in Commodities that we have been waiting for might be setting up. There are a lot of momentum trend lines on the PPO indicator on various charts setting up simultaneously.
The first one is $COPPER.
Lithium has the same look. This is an ETF of Lithium producers. Notice the PPO.
Looking at the steel ETF, SLX, it shows the same momentum trend line on the PPO. The Full Stochastic has some positive divergence and the price closed above the 10 week MA.
One of the questions I have is this all coinciding with the price action in Asia?
Here is the Shanghai ($SSEC). Notice the setup on the PPO.
The charts at the top are commodities. Well Australia is a commodity currency. Look what it did this week! Notice the setup on the PPO.
Lets add one that always catches a spark. $GOLD. Yes, its already on the move.
This trade setup is large and vast but it has a lot of intermarket implications. I put in a full day working through charts to provide a one hour summary on the Commodities Countdown video. It also has wider implications for other currencies. The real big part of the trade has not triggered yet, but this video works hard to set it all up for you. The setup is here. Now we need to wait for the buy signals to trigger.
Here is this week's video.
I have included some scans to help you find some nice setups near these lows.
The Canadian Technician video shows the massive breakdown on almost every sector chart in Canada. Canada is back below the 2008 highs. Tough ten years for investors.
If you are looking for a small gift, you might have family or friends that would like to learn more about the basics of charting. The first section of the book walks through all the chart settings to get the charts you want. The second section is why you might use charts for investing and the third section is putting it all together.
Click here to buy your copy today! Stock Charts For Dummies.
If you are missing intermarket signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access!
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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