By Ngozi Ekeoma
Energy stocks have performed very Wellbut now look to be extremely over bought with over 90% of energy stocks having a bullish point and figure chart. I expect we will see some type of pullback here which could last 5-20 days depending on the speed of the pause/correction in prices. Looks like energy stocks could easily fall back to the 50% mark on the bullish percent chart.
Active Trading Conclusion:
Gold and silver in my opinion should be moving higher because the board market is so over bought and looks like it’s about to have a sharp correction. Money has been slowly moving into gold and silver the past 2 weeks. If the broad market continues to sell off here we could see gold prices rise nicely and retest the $1000 mark.
Crude Oil does have some inventory issues and it could go either way here. Because of the renewed negative sentiment I think we will see pullback here, the question is how far.
We don’t really know how bad the economy really is and if this is just a bear market rally then we could be in for some trouble. I don’t think this is the case but it’s always a good idea know what could happen. If the economy is about to crash it would demand large amounts of money to be pulled from the market and used to fund business and individuals living needs. This means that banks, investment firms and long term investors will start to draw their investments which would include equities, gold, silver, oil etc… pulling all investments down. I don’t really like to think about this but I like to know what could happen so that I can take advantage of market moves going both ways (up and down).
That being said it looks like the market is ready for a pause or correction before it’s ready to continue the rally. Short term traders should be locking in some profits
No comments:
Post a Comment