U.S. Stock Market – I don’t know what’s sinking faster – Obama’s popularity or the jobs market. 500,000 unemployment claims announced this morning instantly deflated the “Don’t Worry, Be Happy” crowd’s hope. While I still think they can manage a rally into the Labor Day weekend, I believe it’s becoming abundantly clear that the wheels have fallen off the so-called economic recovery.
Gold – We had a technically bullish “outside day” up on the daily bar chart yesterday – whereby the high was higher and the low was lower than the previous session’s trading range, with a higher close. While the perma bears and the media that still flocks to them will bark one more time around the old highs, they’re constant crying wolf is at most a nuisance and very sad if it wasn’t so darn funny how people still react to the gang that couldn’t shoot straight.
U.S. Dollar – The dollar’s dramatic slide from early June did indeed witness a bounce off critical support around 80. Any further rise should be contained by the 50-Day M.A. around 83.60. It’s only a question of when, not if in my mind, we break below 80 and within 1-3 years, make new lows below 70.
U.S. Bonds – While I’m very bearish I don’t think it’s time yet to go short. We could see the 10-yr. note back near 2% if the economy begins to accelerate to the downside.
Oil and Natural Gas – No desire to be long or short.
Must Read Article: The Best Gold Interview of 2010
A few model portfolio and Grandich client companies that I consider are potential takeover targets (I’ve no knowledge of any interest) are: