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Wesley Chapel, Florida, Jan. 28
-- After last week’s market turmoil, there is a lot of divided opinion about
whether stocks are in a lasting bear market or whether it’s a great time to
buy the dip, which reached more than 18% from the December high to last
week’s low. Depending on the day, there were also a lot of similar questions
about oil, grains and other commodities. But the charts indicate one market
still appears to be on a bullish track.
 Gold
futures, which had reached a record peak around $916 an ounce a week
earlier, sagged all the way to below $850 in the aftermath of news about a
$7 billion loss caused by a rogue trader at Societe Generale Bank in France
and the ensuing global stock market slumps. Then came the surprise 75-point
cut in Fed funds rate by the Fed and announcements of an “economic stimulus”
package for U.S. consumers and things seemed to get back to “normal.”
Throughout this uncertain period, gold prices rallied back sharply to new
record highs above $920 an ounce.
“With central banks injecting huge amounts of money into the banking system
to revive liquidity and encourage lending and with a stimulus package
putting even more money into the system, it looks like more paper chasing
more goods,” notes Darrell Jobman, editor-in-chief of
www.TradingEducation.com. “To
me, when you analyze the relationship among financial markets, those
temporary fixes look like inflation, and inflation is an environment for
higher gold prices and a weaker U.S. dollar.”
Using VantagePoint Intermarket Analysis Software (www.TraderTech.com)
one can see the strength on their charts and evidence that the short-term
direction of gold prices is upward. First, a bullish candlestick signal last
Tuesday indicated the market had rejected the thrust to lower prices during
the chaos in other markets. Second, VantagePoint’s predicted neural index
moved to 1.0, a bullish indicator. Third, the predicted short-term
difference crossed above the predicted long-term difference a day later and
the angle of both lines pointed up, another bullish clue. Then fourth, a
moving average crossover to the upside suggests a long position.
About TradingEducation.com, LLC
Established in September 2005, TradingEducation.com, LLC (www.TradingEducation.com)
has developed into a comprehensive internet resource offering traders free
educational materials, quotes, and market relevant news for stocks,
exchange-traded funds, commodities, currencies, futures and options. Traders
from all experience levels can benefit from the wealth of information and
tools available at TradingEducation.com which seeks to enhance their trading
strategies and avoid costly mistakes. All information on
TradingEducation.com, LLC websites is free to the public, with operational
initiatives supported solely by advertisers.
About Market Technologies, LLC
Headquartered in Tampa Bay since its founding in 1979 by Louis B.
Mendelsohn, with trading software customers in over 90 countries worldwide,
Market Technologies is a fast growing, Inc. 500, company and recognized
world leader in market forecasting. Market Technologies researches and
develops proprietary trend forecasting and market timing technologies that
utilize artificial intelligence applied to intermarket and hurricaneomic
analysis, in order to forecast various commodity and financial markets
throughout the world. These presently include, but are not limited to,
stocks, stock indexes, ETFs, energies, interest rates, currencies, metals,
grains, meats, softs and Forex, covering over 600 world markets.
www.TraderTech.com
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