Tuesday, November 29, 2011

Bunch of Downgrades & Europe Debt Looms

The market was mixed today with many signals moving in both directions.  Indicies were green today but the Nasdaq got hit today and has been for the last month.  Apple, Google, Priceline, and Amazon have all been lagging in the markets in the recent month.  Chart below shows the performance for the Tech sector compared to the other sectors.  I'm not a buyer of any of these stock until after next leg down in the market.  I do believe that these stocks will get cheaper by the 1st or 2nd quarter of 2012 so just be patient people and just when you think the stock can't get any cheaper it will! :) (I hope the market proves me wrong)

The futures are RED because of the downgrades by S&P for 37 banks.  The European Debt crisis is obviously not fixed and I believe that there is nothing they can do to fix the issue unless they release a 5-7 trillion dollar bailout.  The European Bond Yields are on the rise and I don't think there is any "small fix" that will help this market at all.  This so called "600 billion" bailout from IMF.... I want to see it in writing.... I'm so SICK of the RUMOR MILL... Yes, I'm sure everyone will think this guy is crazy 5-7 trillion but that's what will be needed to have a sufficient fix to the problems in Europe.  Greece will ultimately leave the Euro and maybe a few other countries will leave or be kicked out of the Euro. OR.... the Euro crashes lol.... This latest run in the markets was a SHORT SQUEEZE! Let me repeat, SHORT SQUEEZE!  The market makers are pushing these markets higher to shake out the weak hands before the next dump...

Oil remains bullish/bearish...Why both??? Well... Iraq still is pushing the price of Oil higher because of the fear of any type of military exchange overseas will drive oil prices higher.  Today, there was an attack on the U.K. Embassy which drove prices higher today. Oil will get BEARISH real fast if we dive into a double dip recession that everyone thinks we will not experience (I believe we will).  Oil will go to $140-150 a barrel if there are military exchanged over a extended period of time.  $5 gas here we come :(... (Kill the SO CALLED recovery)....

Gold looks like it could be decoupling from the market.. FINALLY!  Gold has had a correlation to the market recently but seems to have put in a ROCK solid base.  I believe that gold is going much higher and will be over $2,000 by the end of Q1 2012.  Countries are going to have to print causing inflation driving the price of Gold through the roof. It's not bad people to add some gold to your portfolios! 
 Leave your comments below or ask me any questions... Take care and good luck trading...

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