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I'm going to offer my insight into the market under my pseudonym "Trader7." I was educated at a top University in finance and economics ranked top 20 in the world. My industry experience ranges from auditing to investment research. My background includes over 20 years as an analyst... More
  • Cyprus Impact Indciates Market Risk

    Dow falls with Cyprus news but rallies. Sentiment remains strong. Taxing bank deposits in Cyprus to help paid for country's bailout is causing a mess. What a mess! Eurozone continues to fail. The impact on stocks on the news this morning clearly indicate the vulnerability in this hyped up market to the downside on negative news.

    S&P 500 still failing to reach record. Multi-year tops?

    Gold bounces back above $1,600 on Cyprus news. I still would not be a buyer of gold due to sustainability of this bounce.

    Mar 18 3:34 PM | Link | Comment!
  • Dow I Bit Overextended Don't You Think?

    Even on a boring day, the DJIA manages to squeeze out a tiny gain. So that's eight days and counting. Oh and another record high. Given the DJIA is up over 10% this year, to say blue chips are overextended is an understatement unless you think the index can advance 40%. I like blue chips for their dividends and safety but the gains are overdone.

    Google (NASDAQ:GOOG) stalled today but continues to be best of breed in the Internet space. Apple (NASDAQ:AAPL) eyeing $400. I'm not a buyer...yet

    Retail Sales out tomorrow. Maybe some good news? Sequestration may have impacted sales. Low interest rates fueling consumer buying and rising debt loads.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Mar 12 5:48 PM | Link | Comment!
  • Is The Gold Rush Over?

    Gold is struggling. After talking a run at $1,800 in 2012, the metal has lost its luster and hemorrhaging at below both its 50-day and 200-day MA. The chart shows a Bearish Death Cross.

    The recent retracement back to above $1,600 was short-lived and a false rally suggested by a near immediate decline back below. Gold is currently sitting at a sideways channel and looking to hold at key support of around $1,550. Failure could see $1,500 revisited.

    (click to enlarge)

    (Source: Stockcharts.com)

    I would not be a buyer now. Consider that gold has done nothing despite the risk with Sequestration, the eurozone recession, and the potential asset bubble in China.

    Cheers

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: gold
    Mar 12 5:48 PM | Link | Comment!
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