Friday, July 29, 2011

Market Update Stocks Commods Forex

What is usually a calm time of the year, summer has turned out to be absolutely nuts. And we are just getting started I say. SPX index futures are testing 200dsma. There are a lot of players who buy on these tests. Today will be no different. Wait for a meaningful bounce to short. Why short? We just got preliminary Q2 and revised Q1 GDP, which has showed that we are starting to look like Japan of the last 20 years. Care to look at their stock market chart from 1990? Before you throw any stones at me, I am just reporting, do not shoot the messenger. So, many traders will let the SPX bounce into 1295, and will pull the short trigger. Do not short the QQQ, NQ, NDX please. AAPL, GOOG, PCLN, AMZN, and BIDU are going to muddy the waters for shorts there. If you want to do it selectively, short SOX.

Oil is sinking like a rock this morning. Absolutely no surprise. World economy is grinding down to a halt again. Watch 95, has been a support and will be bought temporarily. Should SPX break 200dsma, watch out below all the way to 90.

Gold is now the only sure thing for traders to go to on the upside. This is a raging bull, and my next paragraph is going to show why. 1610 support has held and all-time highs are being poked as I type

Forex is totally screwed up. GDP report put out some mixed signals on where to go from here. CHF and JPY are hiding places and safety. CAD is getting demolished due to 100% correlation to risk, commodities, and US economy. EUR and GBP are all of a sudden up with US ugly spotlight brighter this morning, no deal in Washington, slower GDP - you peak the reason.
This goes on for not too long I say. Watch for Dollar safety to reemerge in 24-48 hours. As risk-off picks up the steam, DXY will turn around and will head MUCH higher. You heard it here first. Yes, gold and DXY up together. Sounds familiar?

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