Thursday Morning Update

Stocks are going to open higher after a fairly impressive day yesterday. I would think you can but early weakness under 815 for day trade purposes. The daily chart may turn more positive with a close up over 820 today but that is awhile off. Also, tomorrow morning's unemployment report is a wild card for more intermediate term direction. I do think, however, that the market can trade up into the mid to upper 800's for this move.

The dollar has broken down somewhat overnight. I don't have a strong view on the dollar for now but for the short term (day trading) it can probably be sold first time back up to 85.30 (currently trading at 84.97).

Crude firmed up over night and I see it is making new highs as I write this. If it retraces to 50.25, I think it is a buy.

Gold has softened overnight and hasn't of yet been supported by the weaker dollar. Again we have short term bearish dollar and gold charts which are unlikely to decline together for too long. Recently we had the both daily charts negative right before gold ran up from 885 to 960 while the dollar collapsed from 87.50 to 83. I can see a scenario where they both rally but less likely that they both fall. If I had to choose one to fall, I would have to pick the dollar.

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