93% of shares in the ?&?500 are trading above their 200-day moving averages a level not seen since May 2011. The indicator (200-DMA participation) gives an idea on the internal strength of the underlying index, by highlighting the degree of participation of individual shares in the current rally. In addition, the S&P500 went 49 weeks without falling more than 10%, which is the longest since the 60 weeks elapsing between March 2009 and April 2010.
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You must be tired of reading analysis about 15 war scenarios and 7 different explanations of why gold fell with stocks despite surging geopolitical risks. But here is what really matters: Last Monday, minutes after gold hit the $4090 low, I sent the below messages to our WhatsApp Bdcst Group, clearly stating the following: 1. Gold has seen the bottom and will not fall below $4090. 2. Equity indices like the Nasdaq100 will not rebound with gold, but will continue to fall into the rest of the week until reaching a low on Friday or Sunday night. And so, just when everyone was used to the idea of gold dropping with stocks, I sent an alert to our members on Tuesday/Wednesday that the correlation will weaken, leading to gold rebounding and indices trailing behind ...until..this week. This is what really matters. The bottom image contains a message from a member thanking me for rescuing his account when he asked me whether to close his gold Long at a loss near $4370. As gold dropped to $4350, I told him to keep the Long position. He listened, held and later closed his long at $4520, making $1500 in profit. This is how we link analysis to trading and positioning.
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