Why the market pause may end

By Gary HarloffCovestor

The minor correction appears to us to be ending. I think we are near the bottom of the latest trend cycle with an upward trend beginning. This cyclical character of the trend may be an early sign of a future market top in months to come.

I am neutral on precious metals PHLX Gold/Silver Index (XAU). I think precious metals gold and silver are overextended and am neutral on them.

Continue Reading Below

My analysis indicates that the only style boxes with positive momentum are companies listed on NASDAQ and small cap growth shares, only precious metals have positive momentum in the sector index category, and the only world index with positive momentum is the Frankfurt Index (DAX).

Real market activity is something the financial industry representatives can not fathom. Because the markets can turn quickly, be ready. May the market be with you!

The opinions and views expressed herein are of the portfolio manager and may differ from other managers, or the firm as a whole. All investments involve risk (the amount of which may vary significantly) and investment recommendations will not always be profitable.

The post Why the market pause may end appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.