ETF Flyover

By -

I am composing over flyover country, hence the title. Anyway, to wrap the weekend up, I thought we could look at a few ETFs. First off, here’s the Dow (DIA) diamonds. As the inset shows, decade-long trendlines have been pushed aside. We’re in la-la land now, folks; the undiscovered country. Call it what you like, but new highs are a beast to assess, because they tend to feed off themselves until…………they don’t.

dia

And just to prove trillions of dollars (or quadrillions of yen) don’t matter, look no farther than japan. Jim Cramer never looked so smart. Buy, buy, buy!

dxj

Away from equities, charts get a little more interesting. Gold, miners, and junior miners all have the same challenge: to push past the descending red trendline that’s hemmed it in since September 2011. I’ve got to say, it’s getting closer. Maybe this will be the week they finally do it, but it’s going to take a weak dollar to make it so.

gdx

And in case you didn’t get the memo, the market has been a living hell for bears for going on nine years now. Just look at the Ranger Bear fund.

hdge

I mentioned earlier how the dollar had to break to give the gold bugs a break. The dollar is resting on a precipice. This has been the low point for the past few years, and a failure at this support could really give the gold bugs a needed break.

uup

Lastly, here’s the long-term continuous contract for crude oil. It is butted up against its Fibonacci resistance, which has likewise been a high point for the past several years. My view is that it’s going to weaken soon and, at most, would finish its rally at about $67. However, I’m not sure it’s even going to get that far.

cl