Weekly Trend Report 12/29/19

BLUE CHIP WEEKLY TREND REPORT
SUNDAY, DECEMBER 29, 2019

WEEKLY ACTIVITY AND CLOSING PRICES ON 12/27/19 FOR CORE MACRO MARKETS

CORE MARKETS TECHNICAL COMMENTARY & TREND ANALYSIS
The S & P 500, Nasdaq and Nasdaq 100 all made new all-time highs this past week. Emerging Markets closed at a 20-month high, and Europe had it’s second highest weekly close on record. These are all technically bullish price signals. In the shorter-term, many of these markets are at the higher end of their daily momentum ranges, and a pullback is always possible, but the longer-term trends are technically bullish here in these markets. I have moved my target cash allocation up to 10-15% from 0% recently and from -25% on 10/06/19. This is not a broad-based market call, but it is a risk adjustment and  profit scaling move.

Gold broke out to an 18-week closing high, and is over the key $1500 level, a bullish signal. Gold Miners, GDX, was up 7.17% on the week, to a 20-week closing high. WTI Crude oil closed at a 32-week high, and also recently had a bullish 10/40 week moving average cross.

U.S. Treasuries and 10-year yields continue to be neutral for my time frame, while yields have a slight upward bias and bonds, TLT, have a slight downward bias. 2.00% is still the key overhead level, and 1.50% below.

My technical view on equity indices continues to be bullish with a focus on technology, healthcare, banks and brokers, metals and mining, energy services, and China.  

Gold and miners have had bullish breakouts and are buyable here and on pullbacks. I am still neutral on bonds and interest rate sensitive industries.  I am avoiding Utilities, REITs, staples and any momentum tech names in downtrends below the 200-day moving average.

SPX WEEKLY

EMERGING MARKETS WEEKLY (EEM)

GOLD MINERS WEEKLY (GDX)

US DOLLAR INDEX (USD) is weakening, at a 23-week closing low, and three consecutive closes below the 40-week moving average, the longest streak below the 40-week MA since April 2018.

 THIS WEEK’S “BLUE CHIP TOP 50” RANKED LARGE CAP STOCKS
(listed by industry technical momentum rank and market cap)