Financial Sense Blog

Historical Analyses Suggest S&P 500 To Top Out

at 1400 – and then topple to 400

Based on a unique comparison with the Nikkei 225 and prior mega-bears it seems evident that the S&P 500 should continue its rise to 1400 or so in the first half of 2011 before it collapses completely down to an unbelievably low of 400. Before you totally reject this possibility please read the entire article.

Profit From This Market Pattern!

By Sy Harding

On average, the market makes most of its gains each month in just a few days around the beginning of the month. Few investors are aware of its importance.

Inflation is Here to Stay

In current economic analysis, inflation is largely in the eye of the beholder, and depending on how you choose to look, very different stories emerge. In the U.S., food and beverages count for just 16.4% of the CPI calculation.

Gold Bottoming?

Gold has risen a fantastic ten years in succession. Gold, of late, has been receiving a lot of interest and publicity and advertising. Gold is probably overdue for a correction in this ongoing bull market. Analysts are talking about “gold correcting down to 1200 or even 1000.” However, I believe that the more important picture is that the gold bull market has much further to go on the upside.

The XAU Pendulum Indicator

By Trader Garrett

The overall long term price trend and fundamental background for gold, silver and the XAU is clearly up. This is irrespective of the apparent current conflict in cycles. Downturns, such as we have all recently experienced, provide one with an opportunity to acquire real assets at “on sale” prices.

Leading Indicator for Oil Hits New All-Time High

Due to South Korea’s heavy exposure to China, and overall growth of the Asian market, the Korean KOSPI Index—the Dow Jones for Korea—serves as a very nice leading indicator for the price of crude. As seen below, peaks and troughs in the KOSPI (red) tend to lead the overall price of crude (black) by anywhere from a couple months to a year. As of now, the KOSPI index is hitting new all-time highs with crude slowly playing catch up.

Precious Metals and the Dollar’s Next Big Move - Part II

Gold, silver and the dollar at a cross road

In short, I feel gold and silver are nearing a short term resistance level and will find selling pressure in the coming days only to continue on their journey down for a few weeks. The dollar on the other hand broke out of its falling wedge on Friday and could have a strong rally for 2-3 days. I feel most traders and investors have been shorting the dollar for two weeks straight, so once they realize it’s going higher there will be a ton of short covering and the dollar should rip higher.

Friday’s Panic In The SP500 & Gold Futures

Mr. Market has thrown traders a few curve balls lately as precious metals and crude oil have been selling off while the U.S. Dollar Index futures were consolidating. Additionally, the volatility index has been very choppy and was indicating that we could be seeing a potential change in the underlying trend with regards to future price action. In previous articles that I have proffered, I was warning about a likely correction in gold and equities as prices were extremely overbought and both asset classes were due for pullbacks.

The Fed and Job Creation

Jobs are properly created by entrepreneurs who are willing to work hard and take calculated risks. Jobs are also created through real increases in productivity, resulting from re-invested profits or conservative borrowing at market interest rates. But the Fed has made those risks impossible to calculate, and made borrowing money artificially cheap. As a result, economic growth has been chilled while unemployment skyrockets.

Stay Focused Gold Investors

Gold investors need to block out the short-term noise and remember the long-term story remains intact.

Financial Sense Wealth Management: Invest With Us
.
apple podcast
google podcast
spotify