DOW over 8000 ? Can't be ! but it is. We have rallied about 20 % in a very short time so what now ? This is where I go to the TA charts but even they are showing some misleading signals. On one hand there is alot of room on the chart to the upside but we will need some serious positive earnings coming out. Of course it is all in "how" the market interprets even the bad news. Is it bad news but the worse may be over ? is it not as bad as "was expected". Remember expectations have been lowered so if any of the bellweather stocks blows away any preconceived earnings then the rally may keep on going.
On the other hand there is much talk of this is not the "worst is over" scenario and the earnings may come out complete crap with more bad numbers to come. All I can say is keep your finger on the trigger cause things change so fast right now and everyday is a new adventure on what the market thinks. The floor traders don't believe this rally according to CNBC but they are just the middle men for the buyers so they do as they say and the ones laying out the cash is the bottom line and so far it is saying they think the worst may be over.
One comment on gold, with the IMF selling 400 tons this year it has really taken the bloom off and it has sold off back under $800 and we could see low $800's if the positive forces in the markets continue.
Oil on the other hand is a different beast and any enthusiasm in the world economy recovering is only going to make the price of oil go up. As per TA charts, $62.50 is the next resistance level with $50 as the support line.
Should be an interesting week ahead but a short one with the holiday Friday.
No comments:
Post a Comment