Another positive week behind us after Monday's pop set the tone. What has followed that pop is the setting up of a familiar pattern known as the "range trade". Look at any of the charts on the Dow or gold and you will see that rise off a bottom with a rounding top pattern followed by a levelling off for a week or so,then a dip as the market finds it's bearings.
The last few months have been repetitive so don't be surprised to see a mild dip this week or next as the market lets off a bit more steam. This is healthy and will allow the markets to move higher the more we see continuing signs that the worst is behind us and new numbers show the recovery is in process. How long that process will be is anyone's guess but as long as the governments are still in there til middle/late next year I expect the volatility to remain pretty calm.
Not to mention the gold/silver bull market that is tracking the Dow etc to a tee. The US is trying to talk up the dollar while in China but barring some major switch in policy/interest rates it isn't going to happen. So party on metals bulls, the time is nearing for the juniors to ramp up, it's inevitable with the majors declining production as Barrick is not shy talking about.
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