Sep 2009
We'reeee Backkk... and Holdin' On To What's Golden
02/09/09 12:12 PM
Well after a somewhat extended and very much needed
summer break, we getting down to business again. As
you have probably noticed, we’ve seen some volume
come back into an otherwise dry market, and we are
beggining to see some very defined trends starting to
form. Let’s take a look at a few charts and see what
we can break down:
We have seen some volume come back into this market over the past few days. However, given yesterdays action, the signs do not look favorable heading into the remainder of the year. We’ve had a massive rally bottom to top, and it is safe to say that we are due for a correction sooner or later. Also, take not of that broadening formation on the S&P, as that could be a possible area of support in the coming weeks.
In our last market analysis, we mentioned the posibility of a bear flag formation on a monthly chart. As of right now, that observation still stands, especially given the general lack of volume on this rally.
Today Gold broke out of a triangle formation that had been developing over the past few months. The volume across the Gold sector was tremendous today, and it looks at though $1000 could be within reach very soon.
Gold had a huge move today, breaking a number of technical resistance levels. Volume is flowing into anything Gold related these days, and it is slightly foolish to not have at least some part of your portfolio dedicated to this sector.
The GDX looks to be in the forming an ascending triangle over the past few months. There is signifigant resistance at $42.5 and it is likely we will see some consolidation before that level is broken. A break above it, though, should lead to some increased buying.
The dollar continues to see selling pressure. Volume has actually increased, though, over the past few weeks. Could it be a short-term bottom? Or just consolidation before another move lower? Time will tell, but odds are this move lower is far from over.
And that’s about it from here.
We leave you with this:
Congress members hard at work debating the budget. So much for change.
We have seen some volume come back into this market over the past few days. However, given yesterdays action, the signs do not look favorable heading into the remainder of the year. We’ve had a massive rally bottom to top, and it is safe to say that we are due for a correction sooner or later. Also, take not of that broadening formation on the S&P, as that could be a possible area of support in the coming weeks.
In our last market analysis, we mentioned the posibility of a bear flag formation on a monthly chart. As of right now, that observation still stands, especially given the general lack of volume on this rally.
Today Gold broke out of a triangle formation that had been developing over the past few months. The volume across the Gold sector was tremendous today, and it looks at though $1000 could be within reach very soon.
Gold had a huge move today, breaking a number of technical resistance levels. Volume is flowing into anything Gold related these days, and it is slightly foolish to not have at least some part of your portfolio dedicated to this sector.
The GDX looks to be in the forming an ascending triangle over the past few months. There is signifigant resistance at $42.5 and it is likely we will see some consolidation before that level is broken. A break above it, though, should lead to some increased buying.
The dollar continues to see selling pressure. Volume has actually increased, though, over the past few weeks. Could it be a short-term bottom? Or just consolidation before another move lower? Time will tell, but odds are this move lower is far from over.
And that’s about it from here.
We leave you with this:
Congress members hard at work debating the budget. So much for change.
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