Thursday, 11 February 2010

Market Pulse: Your source for stock, stock market, stock trades, and stocks info

Market Pulse

Yesterday was really slow. Not much going on in the markets. We have got a lot of markets that are potentially on the cusp of changing direction. The gold market is experiencing a correction. There is an overwhelming majority of gold bugs who see any pull back in gold as a buying opportunity. They also don’t see any chance of gold actually having a sustained trend down because of all the monetary and fiscal irresponsibility of governments around the world. I don’t disagree with their thesis but when gold was steam-rolling up to $1200 I had to force myself not to buy it. It seemed like gold was acting like a stock that was racing up and I hate buying stocks that are making all-time highs. So, I won’t buy gold like that either. Some trend followers like doing that. They always say, ”Buy new highs, and sell new lows”. I can’t figure out how their mind can deal with potentially being the last guy on board the train. I also wonder where they put there stop. So, if they are any trend followers who trade like that. Let me know how you do it. The U.S. dollar also looks like it has the potential to rise much higher. In the October-December period of 2009, it looked really bad for the US dollar. I was wondering if it may be the start of the collapse, but the dollar has rebounded sharply against most other currencies. It sounds ludicrous to suggest that the US dollar can go higher, but charts don’t lie. The dollar is being bought and support by some major players. The commodities (e.g. copper, oil, platinum) are pulling back. I don’t know what to make of that. For example, oil has declined and is close to breaking the December 14th lows. My instinct tells me that they will probably be broken, which means lower prices for crude oil. But at some point crude oil has value because it’s needed by everyone. The S&P500 has taken a break from falling for the last few days, but there isn’t any real volume on the bounce. For the rally to continue, some much needed new buying should come into the market. Keep on the lookout for any more big down bars on the S&P500. If we start to see more big down days piling up, we might be discussing a return of the bear market.

No comments: