Four Strong Trends Kicking off 2015

Jan 20, 2015: 4:08 PM CST

As 2015 continues, we’re seeing persistent trends develop across key markets.

Let’s take a look at one obvious trend, one stealthy trend, and two common trends we should be watching.

All traders are likely aware of the “commodity crash” or collapse in Crude Oil prices.

The collapse was widely reported and frequently traded – whether calling the failed bottom/reversal or else simply trading with the trend and profiting from it.

Given the strength in the US Stock Market and generally positive economic news for the United States, a “stealth trend” has emerged which has surprised many participants.

Bonds continue to generate money flow and relative strength as the related ETFs (such as TLT and IEF) quietly stride to all-time highs.

Be sure to read last week’s “Are You Seeing the Stealth Move in Bond Funds?”  The stealth rally continues.

The two other salient trends – just to select two for simplicity – continue higher in the US Dollar Index (seen with the UUP ETF) and Gold (also seen as the GLD ETF).

In sum, global money continues to flow into the United States (evidenced from the US Dollar, US Stock Market Indexes, and US Treasuries) but also into the perceived safety of Gold.

Money has persistently flown out of oil which continues to challenge the $45.00 per barrel level.

Here’s a different perspective of the same trends as seen not with ETFs but with Futures Contracts:

Note the acceleration of the up-moves (swings) in both Treasuries and Gold through the entire month of January.

Also compare the continued collapse in Crude Oil against the continued strength in the US Dollar.

Think globally when studying these markets (in terms of Money Flow).

If you choose to participate in these trends (ideally trading WITH the trend on retracements and not losing money by calling elusive reversal points), you can use any number of instruments from ETFs, options, futures, or even related stocks (such as XOM for oil).

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Corey Rosenbloom, CMT
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3 Responses to “Four Strong Trends Kicking off 2015”

  1. Brock Says:

    Completely spot on and the thing is that some of these trends are not new but have been going on since 2014 and it has continued in 2015 with even stronger momentum. I am currently riding the strong trend for Eur/Usd pair and all because of knowing it a lot early due to following OctaFX broker’s expert traders who predicted the 1:10 zone almost 5-6 months back and I made great profits thank to them which I was also able to withdraw due to their instant payment system.

  2. Surging Prices and Obvious Trend in US Treasuries TLT | Afraid to Blog Says:

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