From the Trading Desk
Sinking energy prices and floundering bank shares have contributed to the Dow Jones trading lower for a seventh consecutive day. Global bourses headed lower overnight for the second day in a row, spurred by the Japanese government’s new stimulus plan which disappointed investors. The stimulus package entails $73 billion in new spending with an overall total value of approximately $275 billion. Japanese shares reacted by slumping the most in almost four weeks. The precious metals, by contrast, continue to impress. Gold has been on a steady rise ever since holding above $1,310 a few weeks ago and its near term target is the double top at $1,375. Silver, despite abysmal US Mint silver eagle sales during the month of July, is marching steadily higher and will likely test $21. Platinum and palladium are at highs they haven’t seen in over a year.
The dollar fell and gold went up again today. It seems though that the dollar has found a base at 95 to which it bounced off of. You can clearly see this in the monthly chart below. The blue line represents the resistance levels and you see where it lines up, right at 95. From here we can break either way, and we can’t fight price action when it does. A trend will confirm itself one way or the other shortly and it is tradable either way.
Nothing has changed with my overall views.
We have a notice going out to all Newsletter subscribers today about the announcement of my book Illusions of Wealth coming out today but our service for sending out the notices is having issues (naturally). Sorry in advance if you get a few emails about the book today. The book is now #1 in the Wealth Management category and in the top 10 of many categories. I hope you enjoy it!
You can find the book here: http://bit.ly/Illusionswealth
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.