Expect Markets to Rally This Week

A short week in the USA this week with no real economic data until Tuesday. This is certain to be a rally week, with a falling USD and rising Gold and Oil Prices. The Dow may well approach 9000 this week so the index sensitive stocks should be your main target for trading. Tuesday's news includes Pending Home Sales, Motor Vehicle Sales and Consumer Confidence. I would think all 3 will surprise with on target or better than expected results.

Unemployment in the U.S. probably rose at a slower pace and the manufacturing slump eased this month as evidence mounted that the end of recession is in view, economists said before reports this week.

The jobless rate rose 0.2 percentage point to 9.6 percent, the highest level in 26 years, according to the median of 58 estimates in a Bloomberg News survey. The gain would be the smallest since November 2008. A survey of purchasing managers may show manufacturing shrank at the mildest pace in 10 months.

Factory orders have risen by all reports and motor vehicle sales have started to improve.

The Dollar will come under pressure this week after calls from China that they would prefer a World Bank Currency.The greenback fell against most of its major counterparts after the People’s Bank of China said yesterday the International Monetary Fund should manage more of members’ foreign-exchange reserves. This is a hollow request and no one would take the call seriously, what it is, is an attempt by China to bring into question the role of the USA in Global Finance and attempt to secure China a stronger position. China continues to buy Gold as a safety measure. Gold may well see the $1000 an ounce again very soon.

Oil is going to heat up again in the week ahead and $75 by Thursday is probably likely. Iran has reignited Middle East tensions, Nigeria is facing more rebel assaults and the UAE seems almost on the verge of collapse.

Monday morning I would suggest buying Gold, Oil, NPWS, NXHZ, DRYS, BA, F, BBL and selling FAZ and USD.

This maybe the last chance to buy into the Dow sub-9000. Ore prices have soared as weekend meetings between Chinese buyers and the world's largest suppliers have reflected a sharp uptick in demand.

In Europe, banks are forecasting a bumper $20 billion (£12 billion) of stock-market floats in the next two years as hopes of a recovery trigger a renewed bout of fund raising.

Morgan Stanley predicts 35 to 40 companies could float in Europe in the next two years. Household names including Birds Eye Iglo, the frozen-food firm that makes fish fingers, and Acromas, the combined AA motoring and Saga overfifties group, are seen as prime candidates for a return to the public markets.

Comments

[FiscalFallout:]

Great Article, Thanks for the tip on NPWS last week I'm up 800%

Jun 29 07:05 AM

[fireball:]

thanx aft deck.

Jun 29 08:38 AM

[Ryu Mei Co:]

Even if you were right by the end of the week, I wouldn't congratulate you.

NPWS is up but please dont encourage penny stocks buying. I learnt the hard way not to trust them and stay away.

Jun 29 09:52 AM

[FiscalFallout:]

Pretty much the dumbest comment I have ever read.


On Jun 29 09:52 AM Ryu Mei Co wrote:

> Even if you were right by the end of the week, I wouldn't congratulate
> you.
>
> NPWS is up but please dont encourage penny stocks buying. I learnt
> the hard way not to trust them and stay away.

Jun 29 11:43 AM

[Tom Colangelo:]

The Aft Deck mistook a few warped green shoots for an entire virgin forest.

I wished it could all be true and the crises we are in, diminished. But I think not.

Jun 29 01:22 PM

[FiscalFallout:]

According to the Scoreboard, Oil is Close to his $75 call already and the Dow has had an unexpected rally broke 8500 and is heading towards 9000.

Unless of course the scoreboard is wrong. Well called Aft Deck

Jun 29 03:02 PM

[FiscalFallout:]

End of Day Market 100pts closer to 9000 Oil now Oil up almost $3 close to $72.

Please do not let the stupid comments deter you from posting, look forward to your next article.

Jun 29 04:10 PM

[FiscalFallout:]

NPWS another 40% gain today, thanks again

Jun 29 04:22 PM

[buoy:]

sounds great...

Jun 29 05:29 PM