The Bottom Line
Technical, fundamental and seasonal influences point to another volatile period for equity markets around the world this week. Economically sensitive sectors are following seasonal patterns. An opportunity to add to positions will present itself when short term technical indicators start to recover. Preferred strategy is to accumulate economically sensitive equities and related ETFs on short term weakness, particularly if they benefit from favourable seasonal influences.
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Mark Leibovit’s Daily Gold Comment
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GOLD – NEUTRAL
Negative Leibovit Volume Reversals and the potential of again seeing 1600 in Spot gold have put me on the defensive. The 50-day moving average supported Thursday’s decline, so let’s see if it can hold this week. My opinion is that the Gold Market’s gone rogue, but don’t be lulled into complacency, it won’t be a smooth ride to $11,000. We’ve been hearing a lot of cross conversations about gold. On one hand it’s been emerging as the world shadow currency but it’s no longer tracking precisely in opposition to the dollar, others argue its only a commodity in a volatile marketplace and its approaching bubble status. We’ve got hedge funds and institutions purchasing and divesting in the paper gold market while international governments and individual investors are stockpiling the precious metals in safety deposit boxes and bullion vaults. So what is it that has the western world bankers shivering in their shoes? The onset of the next great currency war is only in its initial stages and the world’s countries are in the process of a build-up of their national gold reserves. Make sure you take delivery of the physical metal and don’t let a shakeout scare you. Gold at 1600, 1500 or 1200 is a steal when we’re eyeing $11,000 sometime in the next four or five years. Silver? That’s another story altogether. You can almost make up any number here once speculative fires are set. Best guess? $250!