When you look at the longer-term landscape of gold dating back to
December, it sure looks like it could be in the process of developing a
very long-term bottom, one that could serve up much higher levels down
the road. If you agree, you could always wait for a minor pullback early
next week, and provide yourself with a little exposure to the precious
metal via GLD and/or a bullish leveraged ETF like UGLD.
The bottom line is we’re still convinced these markets are in the very early stages of a strong reflationary theme, one that’s not going to come without its fair share of volatility along the way, but one that should serve up much higher levels in commodities when it’s all said and done.
The world isn’t consuming less of anything, so it’s only a matter of time before prices are dramatically re-inflated. You can’t continue to puppeteer supply and demand forever, and that’s precisely what the Fed has continued to do for quite some time now.
As for the major indices, provided below is a daily chart of the NASDAQ, and as you can see, following Tuesday’s failed reversal signal, the markets loved it. In other words, they found another way to buck the developing weakness over the last few weeks, which is pretty much resulting in what we would consider to be a very minor consolidation phase.
Basically, we got a test of the March 1st high last week, which suggests at some point soon these markets are likely headed higher. However, it would be absolutely no surprise whatsoever to see these markets move lower as soon as next week, and either test the two short-term lows we’ve pointed to here, or even breach them to the downside before the markets could be in position to stage another sharp leg up.
We’ve seen in time and time again, whereby the markets head fake in one direction, only to move sharply in the other direction, so let’s sit tight and remain opportunistic, and not get too involved anywhere in the middle right now.
The bottom line is we’re still convinced these markets are in the very early stages of a strong reflationary theme, one that’s not going to come without its fair share of volatility along the way, but one that should serve up much higher levels in commodities when it’s all said and done.
The world isn’t consuming less of anything, so it’s only a matter of time before prices are dramatically re-inflated. You can’t continue to puppeteer supply and demand forever, and that’s precisely what the Fed has continued to do for quite some time now.
As for the major indices, provided below is a daily chart of the NASDAQ, and as you can see, following Tuesday’s failed reversal signal, the markets loved it. In other words, they found another way to buck the developing weakness over the last few weeks, which is pretty much resulting in what we would consider to be a very minor consolidation phase.
Basically, we got a test of the March 1st high last week, which suggests at some point soon these markets are likely headed higher. However, it would be absolutely no surprise whatsoever to see these markets move lower as soon as next week, and either test the two short-term lows we’ve pointed to here, or even breach them to the downside before the markets could be in position to stage another sharp leg up.
We’ve seen in time and time again, whereby the markets head fake in one direction, only to move sharply in the other direction, so let’s sit tight and remain opportunistic, and not get too involved anywhere in the middle right now.
No comments:
Post a Comment