I will need a meeting at “Soothsayer Anonymous” after completing this commentary.
U.S. Stock Market – I said on September 30th that the market was oversold, noted some charts that showed we were in key major support zones and a good technical bounce was in order. It appears another “blind squirrel” award is coming my way.
One of the many things I can’t stand (I suspect I’m not alone) from the “Talking Heads” on financial networks is the constant talking out of both sides of their mouths. One regular face seen on the networks was stating just a week ago that the FED needed to raise interest rates in order for the stock market to stop selling off and rally. Last evening, the very same “head” said the rally that had taken place the last few days occurred because the market concluded the FED won’t be raising interest rates and that’s good for the market. Say What!!!!!
While I never put it pass the “Don’t Worry, Be Happy” crowd to push the market further up on false premises, I again note my commentary from September 30th about using strength to sell versus weakness to buy. Such is the case now for those yet to follow me into the foxhole.
U.S. Bonds – Nothing has changed. Treasuries the lesser of two evils versus equities while high-yield bonds a total avoid.
U.S. Dollar – Momentum has waned but since the world is in a race to debase currencies, I suspect it shall find itself in a trading range for at least the balance of 2015.
Oil – While the worse appears behind it, it shall be some time of base-building before any substantial rise can hold (outside of major disruption of supply).
Gold – Shhh!!!! The end of the useless relic has not come to pass despite just about everybody and their mother saying it had earlier this year. If most predict one thing and it doesn’t occurred within a reasonable time frame, a major reversal of that viewpoint is a near certainty. Time is now against the numerous gold bears. A close above $1,200 and bear meat will flood the market.