Market Overbought Looking For Higher Low | Grant Cardone TV

Market Overbought Looking For Higher Low

Last Friday the DOW traded down to 16016. The DOW was down 258 points and then snapped back and reversed at around 11:00 and closed up 200 points on the day. Since that day we have been up six consecutive days in a row, up more than 1100 points. The market is now extremely overbought. We went from an extreme oversold condition to an extreme overbought condition. I am looking for the market to make a higher low. I am 100% confident that with only 57 business days left in the year the low of 15379 will hold for the year. At one point the DOW was down 10% for the year and now is only down 4%. I would be looking to sell any stocks bought lower into this rally and then buy them back lower on a pullback. I do think we will get some pullbacks to make a higher low in the next 1-2 weeks in the 15800-16200 range. I may even have to bump this range up to the 16000-16500 range.

The big number on oil on the weekly charts is a close above the 48.15 level. Today oil closed at 49.50. There is a significant amount of support for oil in the 44.30-46.30 range. I am looking for oil to pullback, make a higher low, and then push upward. I think UWTI is a great stock to look at. It is a 12-13 dollar stock with high volume that moves tick for tick with oil.

Gold was up well over $10 today. Gold got up to 1158 and I had said I would be looking to sell any gold and gold stocks in the 1155-1175 range. The Federal Reserve is now looking to raise interest rates if inflation gets above 2%. I do not see them raising rates in 2015. I think gold will be in a range, if it pulls in 20-30 points I would be looking to buy and trade the range.

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