Stocks – Bull –
It stands alone tonight, but the Dow Industrials broke out to a new 33 month high at 12,450.93. A noticeable laggard is the broad-based Russell 2000, but the broad-based Wilshire 5000 is also within striking distance of a new high. The rally comes as expected this week and with the breakout in the Dow Industrials I am more inclined to believe that any pullback next week will be temporary ahead of new highs in most (if not all) of the major indexes. Seasonals are still overall positive for the market this time of year, despite the call for ‘Sell May and Go Away’ now being widely touted (I believe today on CNBC whose real name is the Contrary National Broadcasting Company), so the market may continue to fool the bears who cannot believe we’re still in a bull market. If you believe there is a reverse ‘head and shoulders’ pattern in the Dow Industrials, we can ‘measure’ theoretically up to 13,300 as the next BIG, BIG upside target. Interesting times.
Gold – Bull –
Markets generally tend to points of irrationality and the for the bears who have not jumped on the bullish bandwagon, this time is very frustrating (if not angering) for them. I’ve been dead right on this market for nearly ten years and I hope to be for another ten years and the clarion call is BULL! As always, I take it one day at a time, but there are still higher technical targets and, of course, big unfulfilled upside targets which I’ve often written about herein. Investors who are patient can buy at anytime so long as they buy on a regular basis and hold on to the physical positions. Traders have the dilemma of timing an entry point and generally have to wait for intra-day or multi-day corrections. Still thinking we can see Silver hit $100 an ounce and Gold hit $3500 an ounce in the next few years. Seasonality says we can remain strong well into May and maybe then experience a shakeout. Stay tuned. Don’t forget to me on the Nightly Business Report this Thursday evening!
Bonds – Bearish – On the sidelines awaiting an opportunity to position on the short (inverse index) side. Current tape action is suggesting we may indeed see a greater rally try first (lower interest rates before higher interest rates).
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