The commodities and the precious metals are getting more and more exciting! Gold is flirting with the 671.
5 break point I was talking about in my last week letter.
After breaking its intermediate term downtrend pattern it is in the eve of the long awaiting wave up which should bring it to new highs and quite probably to an all time high.
I'll talk more about this once this move is confirmed which should happen any day now.
Silver is improving too but it is still bellow the downtrend line.
Watch closely 13.
50 and especially 13.
70 (September contract).
After moving sideways between 72.
5 and 73.
5 during the first four sessions, Crude oil finally got some strength in the last trading day of the week.
It is heading higher toward its all time peek achieved a year ago.
Very good run in the last two days for the stock markets but most of them are topping and even though next week could generate further increases we should prepare for some consolidation moves over the remaining part of the summer.
I do not expect a major decrease or correction.
Most probably, we will be caught in a sideways volatile action for the following couple of months.
Dow moved higher and the 14000 level is almost achieved but just like NASDAQ and S&P its run is getting out of steam.
Nikkei 225 still has some room to go up as well as FTSE 100.
I am maintaining the targets of 21000 and 7000 respectively before any possible retreat.
The S&P TSX composite is getting to our previously announced target of 14550 and its further success will depend on the commodities' performance.
They are a major driving force for the Canadian dollar.
It is a different story for the US dollar.
It looks abandoned by the investors...
The 80 support is so close and considering the strength of the other major currencies it could go in territories never seen before.
After the break of the all time 80 level low it will be everybody's guess where it could land.
The Euro broke its previous high and is heading even higher.
Next stop is 1.
43$US.
The British pound is breaking the 2.
03$US and is starting to accelerate its move.
As I said previously, interest rates are heading higher in the years to come.
The major trend of the last 25 years has been reversed.
This will be the biggest problem for the economy, the bonds and the real estate.
However, the stock markets are doing very well for now which in turn is signaling that the worse is not here yet.
As I stated in my recent publications: presently, we should enjoy the ride as it should last at least another 12-18 months.
For the short term situation though, we are better to take some of the recent profits, go on vacation and be ready for an exciting fall action.
The upcoming week should provide us with good opportunities to re-balance the portfolios.
Good investing and best regards, Stefan Penkov
5 break point I was talking about in my last week letter.
After breaking its intermediate term downtrend pattern it is in the eve of the long awaiting wave up which should bring it to new highs and quite probably to an all time high.
I'll talk more about this once this move is confirmed which should happen any day now.
Silver is improving too but it is still bellow the downtrend line.
Watch closely 13.
50 and especially 13.
70 (September contract).
After moving sideways between 72.
5 and 73.
5 during the first four sessions, Crude oil finally got some strength in the last trading day of the week.
It is heading higher toward its all time peek achieved a year ago.
Very good run in the last two days for the stock markets but most of them are topping and even though next week could generate further increases we should prepare for some consolidation moves over the remaining part of the summer.
I do not expect a major decrease or correction.
Most probably, we will be caught in a sideways volatile action for the following couple of months.
Dow moved higher and the 14000 level is almost achieved but just like NASDAQ and S&P its run is getting out of steam.
Nikkei 225 still has some room to go up as well as FTSE 100.
I am maintaining the targets of 21000 and 7000 respectively before any possible retreat.
The S&P TSX composite is getting to our previously announced target of 14550 and its further success will depend on the commodities' performance.
They are a major driving force for the Canadian dollar.
It is a different story for the US dollar.
It looks abandoned by the investors...
The 80 support is so close and considering the strength of the other major currencies it could go in territories never seen before.
After the break of the all time 80 level low it will be everybody's guess where it could land.
The Euro broke its previous high and is heading even higher.
Next stop is 1.
43$US.
The British pound is breaking the 2.
03$US and is starting to accelerate its move.
As I said previously, interest rates are heading higher in the years to come.
The major trend of the last 25 years has been reversed.
This will be the biggest problem for the economy, the bonds and the real estate.
However, the stock markets are doing very well for now which in turn is signaling that the worse is not here yet.
As I stated in my recent publications: presently, we should enjoy the ride as it should last at least another 12-18 months.
For the short term situation though, we are better to take some of the recent profits, go on vacation and be ready for an exciting fall action.
The upcoming week should provide us with good opportunities to re-balance the portfolios.
Good investing and best regards, Stefan Penkov
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