Critical Junction of The Global Economy
We are at a crossroad and critical junction of the global economy. Gold has just top the 1000 level mark and sitting slightly below it. USD dollar has been rising due to the flight to safety behavior from the investor. Euro dollar has been slipping further down due the imminent default danger from the Eastern European Countries. The US major indexes are going to retest the November 08 low. The Japanese Market reach near to the low too. Oil seem to keep slipping down.
This is the deciding crossroad that will make or break the investor. People will want to rush into Gold now. But is it really wise to do so? I think the hype is too much and yet i guess gold investment still have a few legs up. Therefore i will be prudent to wait for it to stable at the 1000 level first before deciding to enter the market.
EUR/USD continue to hover between the level of 1.25 and 1.3 for the pass few weeks. The level of 1.25 has been tested recently. The EUR/USD will likely to continue range bound at a area of 1.25 to 1.3 as the world still not sure where to park their money.
On friday close, the US dollar index has fallen dramatically and this might be good to the market for the coming week. This is because base on the inverse relationship between the US dollar index and US Market at this period of time.
Keep an eye on global economy and be prudent on investing in either Gold, Oil, Dollars and US Market.
I think shorting the US market going into the summer is the way to go. Gold may or may not go up, but this market is going down this summer.
I do agree with you too. Gold is way over shoot. Just beware of the market rebound hard too. Day trading is still the best thing to do in this market. Personally i think the market will rebound soon and this time will be shooting up.