Ed Note: On Major Moves, Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically.
Posted by Peter Grandich at 9:23 AM on Friday, November 27th, 2009
My wife and daughter’s rise before 5AM to hit the stores for “Black Friday” sales woke me up. Normally, I would go right back to sleep but instead turned on the TV to see how bad the world markets were reacting to the Dubai news. I have to admit, I turned on CNBC first. I knew it couldn’t be good when the reporter’s voice sounded like she woke up and found coal in her Christmas stocking.
While I intend to have George of Agoracom use our weekly Friday discussion to exclusively discuss this event and the impact I believe it will have on the markets I follow, I would like to give you a short assessment right now.
The fact that the U.S. market was closed yesterday and is only a “half-day” of trading today, is going to only enhance the volatility that much more here. It won’t be until early next week before one can start to get a true feel on how significant this event really is. Twenty-five years worth of experience suggests to me not to make any significant changes in my portfolio and outlook under today’s conditions.
The U.S. stock market should be sharply lower but I don’t think this was the bell ring I was looking for. It would come as no surprise that in a matter of days or weeks, whatever loss the market has today would be gained back. As much as I would like to say the “Don’t Worry, Be Happy” crowd had their “bell” rung, I think the Grinch that stole Christmas won’t come from Dubai.
I’m truly thrilled with the action in the gold market. We’re terribly overbought and this temporary swoon should end up being the “pause that refreshes.” In the long run, this should actually enhance gold’s upside so welcome the terminally ill perma-bears cries this is the top. The poor souls have little left to draw their usual lines in the sand with.
Given the mood and the fact that the U.S. Dollar was crushed last week, the current rise would’ve been a normal retrenchment IMHO. Remember, the dollar remains firmly in a downtrend until we’ve had a close above 76.50 on the U.S. Dollar Index.
George and I will be back later this afternoon.
On Major Moves, Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically. On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”. Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th, 2009. He also bought oil and oil related investments near the lows after the dive from $147.
….go to visit Peter’s Website.
To HERE Peter speak and others speak on Trading go HERE:
Off to Toronto for BNN tomorrow then Montreal Investment Conference.