Just like watching paint dry....it looks like the turn is taking hold. I noticed today that stocks such as DHI and KBH had their widest range down today and off 3.9%.

We have rolled over to the January 2021 futures contract and see that price is at an MFU-3 target level of $45.30.

Breadth and positive momentum is expanding in the energy sector. We would be adding here to the long XOP position with an initial target at $60.50, +10% from here. Our intermediate term target is at the MFU-3 level of $71.50, +30% from here.

WTI has formed a bullish Money Flow Unit (MFU) off the recent low with an initial target at $45 followed by an intermediate-term target at $50. The XOP is one way of play this bullish setup, and we get an initial target of $60.50, +15% from here.

Not much has changed with the price structure of gold as price continues to trade above support at $1850, and below its 50-day average at $1908.

Both the S&P 500 and Nasdaq Composite are within target zones where we can expect a pause or pullback to occur. If it is the start of a pullback, we need to wait for negative money flow units to form to determine the downside projections.

Below is an update on the long gold trade we sent out on October 29, followed by our bullish call on silver.

With our update in the gold note we just sent out, we wanted to highlight five precious metals stocks that are in a good buy zone.

We are taking a shot on a long position in the December gold futures.

The weekly charts of the S&P 500 and Nasdaq Composite shows these indices right at their uptrends and appear ominous to break lower

We have both the S&P 500 and Nasdaq Composite both grinding lower after turning down from their short-term money flow units (MFU), and approaching important support zones.

We have the S&P 500, Nasdaq Composite, Mid-Cap (MDY), Dow Transports, and Dow Utilities all into target zones where we expect a pause or pullback to occur. The strong momentum of the last four days has these targets getting hit quicker than expected.

The S&P 500 and Nasdaq Composite have both moved up above their 50-day averages with good momentum. Both indices appear to have formed small bases, “head & shoulders” pattern, and they look poised to move higher from here.

We believe the low in gold is in as price has turned up from the MOB support band.

The S&P 500 formed a negative Money Flow Unit (MFU) this week, which has the index in a weak position. The only way this gets negated is for a close above the recent high at 3440.