Equities and precious metals are on the edge of another rally and it could start as early as tomorrow. On March 13th I posted some of my analysis online showing how the market was trading at a key pivot point and that a sharp price movement was about to unfold.
Trading with multiple time frames – every now and then it’s always a good idea to look at some different time frames to be sure you have a solid understanding for the longer term trends in play.
Portfolio yields are under pressure due to the worldwide flight to safety over the last few years, making conservative and income growth portfolios more difficult to manage.
At the risk of stating the obvious, the recent market action in the commodities has been manic with wild gyrations of price in a wide variety of basic materials, metals, and energy.
The question everyone is starting to ask is how far will the metals correct? Personally, I do not think they will drop much further but I do think it’s going to take 6-8 months before we see new highs in both gold and silver.
As most sophisticated investors and traders are aware, the U.S. Federal government has run up significant deficits and the long term debt burden is becoming a drain on Gross Domestic Product.
Investors continue to embrace exchange traded funds while dropping mutual funds from their portfolios. That’s the finding of the latest industry study by Cambridge, Massachusets-based Cogent Research.
Today the stock market bled out with a river of red candles. All of the recent gains vanished in one session. Strong selling volume sessions like this are typically a warning sign that distribution selling is starting to enter the market.
There is a potentially big setup in precious metals sector along with the dollar which looks like its about to unfold. Since mid-October of last year gold started to show signs of distribution selling.
This has been an interesting week for traders and investors as precious metals melt down on the back of a rising dollar. Equities on the other hand bucked the trend and moved higher as they get bought into earning season.