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Equities Gold and Silver Firm Overnight
Posted on 09/25/2006 16:38:56 | Link | Post Comment
0920 EST Wednesday March 01 2006
Good Morning: The late selloff we talked about Monday afternoon, that we suggested might be an interim high of some consequence, in fact turned out to be just that, as the Equity markets got a mild hammering Tuesday set off by weaker consumer sentiment numbers and a quirky comment regarding a slowing in Google's growth that caused the GOOG to be summarily taken apart within minutes, before it did manage to stabilize by bouncing off the 340 level of a week or so ago, effectively putting in what might turn out to be a reasonable double bottom formation, if yesterday's retest holds and it potentially could. Overnight the S&P and other indices have rebounded quite stoutly and one can not count these Equity Markets out just yet. As we have suggested on occasion, there is formidable resistance up around the 1,300 level on the S&P 500 and we have also stressed the importance of breaking out to new multi-year highs on the SOX Semi-Conductor index that has tended to restrain the Nasdaq from moving higher and in fact has been quite detrimental to its overall progress, almost putting the Nasdaq in a sideways to downtrend mode over many weeks. Whilst yesterday's action has definitely tempered whatever strong bullishness might have been creeping in, this should re-initiate the wall of worry the stock market needs to climb in order to recover.
Following a day like yesterday, we have to be mindful, that the possibility for further selloffs are now more likely to exist and could come out of nowhere at any time. As we have recently stressed, the markets are at an historic juncture here and March will likely usher in a new trend or maintain the upward continuation of the trend that has been in place now for almost 3 years.
We mentioned the vulnerability of the US Dollar yesterday and that came to pass as the Currencies strengthened considerably in what may be the early stages of a major trend change. The impact of this on Gold and Silver and metals in general was palpable as Gold rallied quite sharply along with Silver, which is now once again gunning for its next important milestone of $10. For the first time in a very long time, Gold and Silver did what they were supposed to do when stocks sell off. Rally strongly and the fact that they did that so impressively yesterday, may add credence to what we have been expounding for some time now, that this is a very powerful uptrend indeed in metals...
Trade Well
From the Desk of Savant
Good Morning: The late selloff we talked about Monday afternoon, that we suggested might be an interim high of some consequence, in fact turned out to be just that, as the Equity markets got a mild hammering Tuesday set off by weaker consumer sentiment numbers and a quirky comment regarding a slowing in Google's growth that caused the GOOG to be summarily taken apart within minutes, before it did manage to stabilize by bouncing off the 340 level of a week or so ago, effectively putting in what might turn out to be a reasonable double bottom formation, if yesterday's retest holds and it potentially could. Overnight the S&P and other indices have rebounded quite stoutly and one can not count these Equity Markets out just yet. As we have suggested on occasion, there is formidable resistance up around the 1,300 level on the S&P 500 and we have also stressed the importance of breaking out to new multi-year highs on the SOX Semi-Conductor index that has tended to restrain the Nasdaq from moving higher and in fact has been quite detrimental to its overall progress, almost putting the Nasdaq in a sideways to downtrend mode over many weeks. Whilst yesterday's action has definitely tempered whatever strong bullishness might have been creeping in, this should re-initiate the wall of worry the stock market needs to climb in order to recover.
Following a day like yesterday, we have to be mindful, that the possibility for further selloffs are now more likely to exist and could come out of nowhere at any time. As we have recently stressed, the markets are at an historic juncture here and March will likely usher in a new trend or maintain the upward continuation of the trend that has been in place now for almost 3 years.
We mentioned the vulnerability of the US Dollar yesterday and that came to pass as the Currencies strengthened considerably in what may be the early stages of a major trend change. The impact of this on Gold and Silver and metals in general was palpable as Gold rallied quite sharply along with Silver, which is now once again gunning for its next important milestone of $10. For the first time in a very long time, Gold and Silver did what they were supposed to do when stocks sell off. Rally strongly and the fact that they did that so impressively yesterday, may add credence to what we have been expounding for some time now, that this is a very powerful uptrend indeed in metals...
Trade Well
From the Desk of Savant
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