Market Timing Brief™: Stocks and Gold Fall as the US Dollar Wedges Precariously Upward

Market Timing Brief™ for 11-21-2011: Bullish Signs and Hopes in a Sea of Red

Europe remains a mess and the US is not far behind with lawmakers unable to make any progress on the deficit  The fact that they can now put off the deficit until after then next Presidential election is very convenient!  S&P is threatening to downgrade our debt again if the $1.2 trillion in automatic cuts are eliminated.  Enough is enough.  Let’s vote the bums out – regardless of party affiliation and elect people who have brains that think independently rather than simply follow the party line.

The VIX volatility index failed to hold above the 50 day moving average today (VXX, VXZ, SPY,SPX).  That is bullish for the stock markets.   Seasonality is often positive over the two days prior to holidays.  In addition, I suspect Black Friday sales will be OK which could boost the market by Monday.

Gold continues to slide and has more to go (GLD, IAU, DGP).  It still appears to be a correction, rather than more, but I will monitor this of course.  Commodities are sinking with gold.  I claimed weeks ago that European nations would be selling gold to raise cash and that has become a mainstream concept at this point.

Since the dollar is at risk of breaking an upward wedge to the downside, it could crash back to the Oct. low (USDX, UUP).  That would spur a gold rally, so we may not have far to go until gold shines once more.  My feeling is that you may as well buy it on the way up rather than down.

Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

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Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

The last video update on the Stock Market is here: This Weeks Video Chart Update

Been wondering about how investors are feeling? (will be updated tomorrow)

Survey Says! (AAII Sentiment Survey that is!)

I’ll put up an update on Saturday on sentiment.

Follow my Twitter comments during the market day (link to right).

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This entry was posted in gold, gold etf, investment, Market timing, S&P 500 Index, trading, US Dollar Index and tagged , , , , , , , , , . Bookmark the permalink.

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