Stocks and commodities are under pressure from the rising dollar. We have already seen a sizable pullback but there may be more to come in the next few trading sessions.
Looking forward to 2012 it looks as though we are going to see some major changes unfold globally that will change the way we do things and live our lives. Unfortunately its a very negative outlook but I do have hope that something will be done to preserve our somewhat normal lifestyles.
Over the recent couple months the precious metals charts have made some sizable moves. Most investors and traders were caught off guard by the sharp avalanche type selloff and lost a lot of hard earned capital in just a few trading sessions. Gold dropped over 20% and silver a whopping 40%.
Income investors have a new ETF choice with this week’s launch of a mortgage REIT fund by Van Eck Global (MORT). The ETF tracks an index of publicly traded mortgage REITS which make money not by investing in real estate, but by investing in mortgages.
The buzz around the blogosphere and in the media is that Quantitative Easing II is scheduled to end in around 3 weeks. Already pundits are asking about Quantitative Easing III as a matter of when, not if.
Here is quick pre-week analysis video explaining what I think could happen in the gold, silver, oil and the stock market. The dollar continues to control the short term movements in both stocks and commodities.
This week we are seeing fear across the board from traders and investors as they dump their long positions is stocks and commodities. Just in the past two trading sessions alone we have seen extreme overbought conditions and extreme oversold conditions which generally mean another big move is brewing…
David Banister expects Silver to correct to the 40 to $42.75 areas based on his Fibonacci work and Elliott Wave views, and after this 4th wave consolidation we will see a surge to as high as $60 per ounce.
In overnight and pre-market trading the US Dollar posted a strong rally which in turn caused a sharp selloff in the equities market. The market is currently down 1.6 – 2.3% depending on the index traders are following.