There is a lot of talk about this market being overbought. There’s just as much talk about how many investors aren’t in this rally and they want in. Let’s start the talk for those that ARE in this market – what now? What are some signs to watch out for? Are you day-trading in and out of positions? Why not let those winners run? Here are some guidelines to help let those profits run in a trending environment.
Back in February an article was penned in which the case was made for a period of underperformance in gold relative to the general stock market (Gold, Is the Future Still Bright or Fading?). In this article a case is made for a strong second half for both gold and precious metal stocks.
It has been a really fast moving series of events in the stock market over the last few weeks and the outlook has changed pretty radically in just the last 10 days. I am always monitoring events and important developments in my indicators and on the charts.
While the financial media is certainly going to be clamoring over the all but certain improvement in Q2 GDP numbers set to be released later in the month, should investors? Is the worst behind us and are there clear skies ahead, or is the picture far from rosy? These are the vital questions investors need to ask themselves as their answers to them will dictate how they invest going forward.
It was only a few days ago when everyone was commenting on the head and shoulder topping pattern and expecting a decline in the S&P 500 to the low 800s. CNBC anchors who know nothing of technical analysis were even commenting on it as the financial media were all abuzz with the pattern, with Google Trends key word search showing a dramatic increase in Internet search and news reference volume highlighting the frenzy behind the pattern.
Today’s article is a follow up to last week’s piece entitled, “Commodity Bubble Revisited.” The premise of last week’s article was to make the case that commodities were not in a bubble in the last bull market that ended in 2008 with a climatic top.
Over the last few months, markets have enjoyed a strong recovery on the hope that an economic recovery would take shape. For much of this time period, markets have been content to observe economic data which has improved moderately, or in some cases, simply failed to get much worse.
Green, Yellow, and Red. Those are the colors of an American traffic light. Green means go. Yellow means caution because the red light is about to appear. Stop if you can do so safely. Red means Stop. Currently, the markets are signaling a yellow light which again, means caution. It means take a step back and review your homework. Are your hypotheses proving correct in this market environment?
Today’s article will be the first part of a two part series addressing whether commodities represented a bubble this decade with the benefit of hindsight to look at the correction in commodities over the past year.
Today’s announcement from the Conference Board was especially telling as not only did the numbers come in below analyst expectations, but among the key numbers each component declined. In the case of the overall confidence survey, the June figure came in at 49.30, down from 54.80 in May, while the Present Situation component came in at 24.80, down from 29.70.