Let's start with jobs. We had a higher number of people looking for weekly unemployment benefits. BUT, the bigger story is flight to quality. Where are you going to get returns? From bonds, cash or stocks. Let's face it, companies are making money and the best place to invest is in the equity markets. I am not saying that I don't believe in defense and I am not saying that I agree with making new highs, but technically, the path of least resistance seems to be to the upside. If you can't go down (and can't go down on bad news), then the only way you can go is up.
I believe corporate earnigns should be good for the next earnings peiod, but depending on how high unemployment climbs, let's see what Q1 and Q2 look like in 2012.
As I mentioned a few months ago, if we get into summer markets near the highs, we should leak slowly higher. We have seen this during other slow periods such as last summer and the past 2 December Holiday seasons as well.
With equities up huge, the USD got crushed - got to love those inter-market relationships. You can count 4 BUFFALO BOUNCES today:
Past performance is not indicative of future results
Past performance is not indicative of future results
Past performance is not indicative of future results
To the equity markets. Everyone is talking about Gold. Unfortunately, when it broke out above resistance, it didn't come back and give us a second chance. This was more of a fundamental move than a chance at a low risk technical trade:
Past performance is not indicative of future results
Looking at the overall markets, again, new highs seem likely. Here is the SPY. Is there any reason to play defense at these "elevated" levels?
Past performance is not indicative of future results
Happy Trading and Be Environmentally Cool
Coach Brian
Currency trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
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