It certainly would appear as though the Federal Reserve is getting exactly what they want, higher equity prices. Could the current monetary policies of “extreme” asset purchasing by the Fed be creating a bubble type atmosphere in equities? I think so! Could we be heading for some turbulence in the very near future after some shot-term attempt to push the averages higher on some Greek deal?
Was Friday’s Price Action in Gold Signaling a Top in the S&P 500?
Friday morning traders and market participants awaited the key January employment report from the U.S. Bureau of Labor Statistics. The reaction to the supposedly wonderful report was a surge in the S&P 500 E-Mini futures contracts as well as several other key equity index futures.
The Dollar, Weak Earnings Indicate A Top is Near for the S&P 500
Over the past five months gold has fallen sharply and is no longer headline news which it once dominated back in 2011 when it was making new highs every day. The shiny metal has been under pressure because traders and investors started to pull some money off the table to lock in gains. Gold prices had surged so fast most advanced traders knew that final high volume surge was not sustainable.
Could Oil Prices Intensify a Pending S&P500 Selloff?
Last week we received reports that the unemployment rate in the United States was improving markedly. In addition, sentiment numbers were released that confirmed my previous speculation that market participants were becoming more and more bullish as prices in the S&P 500 edged higher.
The past few months have been tough for those holding precious metals stocks, PM futures contracts or physical bullion. With silver is trading down 41%, precious metals stocks down 30% and gold 15%. It has people scratching their head.
The question everyone keeps asking is when can I buy gold and silver?
How many European bankers does it take to change a light bulb? That's a joke in search of an answer, but EWI's European analyst Brian Whitmer explained five months ago that the "light bulb moment" was coming -- that's the time when most people would clearly recognize the severity of the European debt crisis.