President Trump’s “on again-off again” tariff war continued while I was away, but the S&P 500 Index (^SPX) managed to grind out some gains regardless. In fact, our 52-Week Strategy has chalked up a 9.8% profit since the trigger last month, summarizes Ian Murphy, founder of Murphy Trading.
The price of gold also continued to climb higher, with Bloomberg claiming that central banks are behind the move as uncertainty hangs over the future of the US dollar. In the tourist shisha bars and cafés of coastal Egypt, we felt this firsthand. The euro and US dollar were always taken at parity...but the US dollar is now being marked down by 10%-20%.
Whenever I return to the screens after a break from the markets, the first thing I review is the Composite Indicator. This indispensable tool immediately tells us what the current market trend is and where it is likely to go next. It’s above the zero line (a bullish signal), but there may be a bearish divergence setting up. So, mixed signals!
Meanwhile, the 52-Week Strategy trigger and the Help Strategy trigger (which wasn’t, but many people took anyway) have both notched up some profits.
The indicator has remained above the zero line, adding strength of conviction to the move upwards.
