The last seven days has seen the stock market rallying hard. You’d hardly guess there is a financial crisis going on.
So has this been a victory for the bulls? Should the bears get ready to pack their bags or should they sharpen their claws? I believe the market could still have more surprises up its sleeve. However, now that we have reached key resistance levels, there will be a battle between the longs and the shorts.
Gold and Silver’s volatility has quite literally “evaporated”. The sideways consolidation still continues. Both metals seem stuck in an unhealthy sandwich of support and resistance. A breakout still remains to be seen.
In the above video I briefly explain some of the key points happening in the stock market with a focus on the S&Ps (ES) and also a brief look at the Gold and Silver.
I would say victory for the bulls that were participating in the nice volume bar at yesterdays exit. Down we go now, probably need some kind of news to facilitate it. Maybe a little (or not so little) bounce on next support to shake out any loose shorts? ~Steal
Alessio
Do you see potential decline (off xx%) and when it will come ?
Well thats what EWT/RTEA shows is possible…
It wouldn’t surprise me if the market did its traditional post-Thanksgiving to just after New Year’s day bounce, but it also wouldn’t surprise me if this was greatly facilitated by a pre-Tanksgiving crash! Thanks for the assessment Alessio, especially for being moderately sober on gold and silver, especially now that you are making the rounds with the wild eyed type who make good money selling ads from gold companies. I think that gold can almost only go up (though it is not nearly the hedge that land is), but I concur that buying before it breaks through the channel in one direction or the other is markedly problematic. Keep encouraging smart money thinking!
How are you going to comment on this one: http://www.marketwatch.com/story/top-forecaster-sees-sluggish-growth-no-recession-2011-10-12?link=mw_home_kiosk
Best,
A
One more question. How did it happen that you showed up during BBC news? If we can learn how it happened that BBC decided to invite you? Thanks 🙂
A
Reuter’s video from across the pond from me, on the English side.
Sounds Rally Gloomy.
http://goo.gl/xdwnF
Darn Spell Checker..
Sounds Rather Gloomy.
The guy in Reuters news was a bit not well informed. It was not prime minister, but minister of finances who said “usually in the past such crisis was ending in war”.
How can someone be so sure that Europe will go in recession? It may be G20 meeting and the decision and action they take avoid debt crises and as a result EURO and stock market dont crash. First thing is this. Selling short in a downward market or long in upword market is quite easy but unless you are 100% sure about the economy you cannot make any decision. Euro had a bearish trend some 15-30 days back and people like me never thought it would bounce back around 1.3800 in a bear market. It broke people’s stop loss. Hardly people can understand causes of debt crises and consequences of it.
Even the currency strategists who are in this field since long cannot predict accurately. Some are still bearish and other still bullish for some more time. You should only take chances if you are 100% sure where the economy will go. I need to have reasons and proof if i want to be sure economy will actually go in recession.
Based on your current analysis Alessio & your personal view, where do you see gold/silver headed within the next week to couple weeks ahead? (please understand that the majority of your followers are unskilled when it comes to Xs and Os and charts)
Hi Luke. The volatility in gold and silver has been pretty much sucked out. I don’t expect any major moves in that market for a while. Over the long term I am still Bullish on those metals and turning higher. But in the short term in the next few days and weeks, it is anybody’s guess. We could for example have a test of the lows. If you’ve subscribed to my free weekly videos I will keep you informed: https://www.leadingtrader.com/alerts – Take care.