Comments for August 24, 2022

Although there are many bearish comments to be found on the Net, mostly based on increased rates and the FED QT program, the Money Flow is still basically in positive territory for most sectors.



Of course the past few days have been rather negative as we can see below.



The Futures also display TEV patterns below their respective averages, which is a bearish situation.







The NHNL indicator also displays lower highs since 18 months ago. This indicates a lack of participation by smaller caps.



Interesting to see that even though rates are bouncing back up, gold/silver display a positive EV pattern.





As a consequence, the PM sector seems to be attracting good money (See the EV patterns of AEM, GOLD, RGLD, WPM, HL AG, etc.)



Conclusions:

Although it is easy to be negative here, I would still prefer to see the glass as being half full.
We can see in the trade ideas below that all the short ideas have only a slight chance of reaching their respective short level. This indicates a market that is oversold.



I would certainly prefer accumulating stocks such as BCRX/HZNP which display strong accumulation.