friday morning

SHORT TERM: stocks open lower on weak GDP report, but turn mixed.
Overnight the Asian markets were all lower with Australia’s ASX and India’s BSE taking the biggest drops: about 1+%. Europe came in lower as well, down 0.60%. Our stock index futures headed lower after Q1 GDP was reported under expectations at 1.3%. This is subject to revisions of course. Core inflation for the first quarter rose at a 2.2% rate. The market opened lower making a low within the first 15 minutes. As the market bounced off this low, the NAZ eked out a new bull market high. Bonds are flat, Crude is down 20 cents, Gold is rallying +$3.00, and the Euro just made a record high verses the Dollar at 136.80. Short term momentum is around neutral, backing off from the overbought levels of the past few days. It is possible the SPX just completed Nano wave 3 as noted on the charts below. But this is not confirmed by the other indices yet. Let’s see what unfolds today. Next week we have a slew of economic data including; Core PCE, ISM, ISM services, Auto sales and Non-farm payrolls. Could be a choppy week. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.

About tony caldaro

Investor
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3 Responses to friday morning

  1. tony says:

    Hi Frank …
     
    That was funny!
    Gold is in its own world these days, like Crude.
    Trading on pure technicals, but is being held down by the lagging mining stocks.
    Once they wake up, we\’ll see $720 …
    Enjoy your weekend!

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  2. Frank says:

    Hi Tony,
     
    Just for fun reading: http://www.minyanville.com/articles/index.php?a=12701
    Are they serious?  They got to be joking, how does people come up with these things?
     
    Anyway, gold had a good turn around day. Volume was higher today then yesterday\’s big down candle.  Looks like gold pull another fast one on the weak hands…?  But still I\’m still not quite sure how USD (if it keeps on rising) would affect gold. I guess we\’ll tell by next week!  Have a great weekend Tony!
     
    Frank

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  3. Frank says:

    Hi Tony,
     
    I hope gold can decouple from USD soon.  It seems these days, is drag around by the dollar.  Do you anticiplate USD keep dropping?  It\’s in the $81s and soon may break and go to $80s? But not much to drop further unless expectation of collapse of USD, which I doubt.  But if USD start to head higher, can gold go higher also??  I think we had this discussion before, but as look of now, if USD keep rebounding up hard, it doesn\’t look too good for gold…
     
    Frank

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