The weekly VR Gold Letter focuses on Gold and Gold shares. The letter is available to Platinum subscribers for only an additional $50 per month and to Silver subscribers for only $70 per month. Email me at mark.vrtrader@gmail.com.
Back on February 10(one week ago) these were the headlines:
“Bernanke Will Raise the Interest Rate When the Time Is Right”
Ben Bernanke outlined his plan for scaling back the Federal Reserve’s stimulus programs today, which included raising the interest rate back above near zero, which is where it has been since January 2008, in order to contain inflation. However, the Fed Chairman would not be pinned down on a date for such an occurrence.
“Although at present the U.S. economy continues to require the support of highly accommodative monetary policies, at some point the Federal Reserve will need to tighten financial conditions by raising short-term interest rates and reducing the quantity of bank reserves outstanding. We have spent considerable effort in developing the tools we will need to remove policy accommodation, and we are fully confident that at the appropriate time we will be able to do so effectively.”
Well, I guess old Ben was warning us that it coming sooner rather than later when he referred to an ‘appropriate time’.
Market are down sharply in overnight trading and I warned that we could see a pullback. Platinum subscribers have been in cash awaiting a retracement both in stock index ETFs and Gold related plays. Am I that smart? Not really. The market was overbought having rallied six, then seven and then eight days in a row (measured intra-day) and needed a rest. Negative Volume Reversals (r) fromed today would suggest a further correction possibly stretching into a mid-March low – though where I am sitting this morning that appears just too great a distance away.
I am buyer on a pullback, but let’s see just how much (or how little) damage is done first. The worst case is that post new lows between now and mid-March and the best case is that we only retrace part of the upleg that began off the February 5 low. In the S&P 500 a pullback to the 1080 makes a lot of sense to me.
Special offer from Mark Leibovit for Money Talks only: The intense analysis of Gold in the 10-12 page The VR Gold Letter is right now 75% off for the first month or $29.95 (regularly $125.00 a month). The weekly VR Gold Letter focuses on Gold and Gold shares.Go HERE and use the Money Talks promo code CBC12210
The weekly VR Gold Letter focuses on Gold and Gold shares. The letter is available to Platinum subscribers for only an additional $50 per month and to Silver subscribers for only $70 per month. Email me at mark.vrtrader@gmail.com.