With the Fed continuing to ramp down its QE programme, a bearish technical set up, and a lack of CPI inflation, the outlook for gold is bearish, and therefore gold is still likely to go to $1,000 before it goes to $2,000.
Gold has made some good progress in the last three weeks, and not surprisingly, so has the Gold & Silver Mining Index (XAU). When we looked at the chart recently, we saw a number of features worth talking about.
For a number of weeks the Fed has been talking about “tapering” its asset purchases, and from the recent spike in US government bond yields and the decline in US equities it seems as though investors them at their word. This does however raise an interesting question: If the Fed really is going to begin taking away the punchbowl why is the dollar tanking?
For those that have been sitting in cash and have missed the 25% rise in the S&P 500 since November 2012, the recent 5.3% correction likely represents the best buying opportunity you’re going to get. The index bounced perfectly off its uptrend line and the outlook for US equities remains bullish.
The Percent Buy Index (PBI) shows the percentage of medium-term BUY signals for all the stocks in the S&P 500 Index, and the chart tells us if the index is medium-term overbought or oversold. Toward the end of May the PBI hit the highest reading (94.2) in its almost 14-year history.
This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Wilshire 5000, West Texas Intermediate crude oil, palladium, and the Australian dollar.
Since reaching an all-time high of 1,687.18 on 22 May the S&P 500 has established a downtrend which so far has seen the index fall 4.7%. This article shows the new trend in the major US stock average and examines two potential short candidates that could take advantage of the new market downtrend.
In the last few weeks many of the companies within the solar sector experienced terrific rallies that ended in a mini-blow-off top. However, the long-term picture shows an industry that is recovering from a long bear market and has now broken out of a major basing pattern.