Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Beware Gold Stocks Downside - 13th Dec 19
Fed Says No Interest Rate Hikes In 2020. What About Gold? - 13th Dec 19
The ABC’s of Fiat Money - 13th Dec 19
Why Jo Swinson and the Lib Dems LOST Seats General Election 2019 - Sheffiled Hallam Result - 13th Dec 19
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Stock Market Powering Ahead With Significant Momentum

Stock-Markets / Stock Markets 2010 Nov 08, 2010 - 03:19 PM GMT

By: Christopher_Quigley

Stock-Markets

Best Financial Markets Analysis ArticleThe market continues to power ahead with significant momentum. The Dow 30 Industrials, the Dow 20 Transports, the S & P 500 and the NASDAQ 100 all are taking wind from a new quantitative easing policy, extended Bush tax breaks and positive earnings guidance. In addition Wall Street likes the idea that Democrats and Republicans must work together and compromise following the mid-term Congressional elections.


There is of course another factor influencing the positive trend. Given that current interest rates are near zero the only way bond rates can go is up. Rising rates will herald an end to the extended bond market rally we have witnessed over the past years. Smart hedge managers are reading the change and are moving ahead of more cautious mutual fund players. Should this capital re-allocation strategy become more pronounced, good times could finally arrive to beleaguered equity managers. Remember the stock market has ambled range bound since 2001. It is thus well in line for major price movement particularly when you factor in the inflation multiples which will eventually kick in to common price levels  as a result of quantitative easing dollars moving out from financial balance sheets and into the broader economy.

Since September our recommendations have done fabulously well.  Silver (SLV) is up 36%, Gold (GLD) has gained 10%  and our emerging markets ETF (EDC) has advanced 70%. Long may it last. I recommend sticking with these momentum trades until their 20 DMA’s are significantly broken on large volume. I do not believe we will see that soon. If anything I reckon those investors who are out of the market may find it difficult to find a safe entry point until the earnings season in early 2011. But traders should not be disheartened. The market eventually always retrenches. I am a great believer in waiting for a technically sound purchasing position. Patience will always outlast recklessness. In other words never chase “Mr. Market.” For those who are looking for an investment “target” that has not run too far from a conservative technical range I recommend consideration of USO, the oil investment vehicle. This ETF is significantly off its 2008 high of 103. It currently trades around 39.50. Should it break the 41 dollar level it will be a definite buy and could go all the way to 120, in 2011 and beyond, should the bull perception begin to consolidate.

On the value front there have been great results from our watch-list candidates. To name a few: Western Digital (WDC) is up 41%. Monsanto (MON) has risen 29%. The Blackstone Group (BX) has gained 40%. Southern Copper (SCCO), a company that actually pays a fantastic dividend, has increased 50% and Telefonica (TEF) has advanced 35%.

Observing  price action broadly across the market-place the message I am getting is that the worst is over, short term, and that the bull trend is growing in energy and power. Extended and compressed high stochastics are a feature of bull markets and that is what we are experiencing. The final leg to the “Bull” stool would be for the bottom to be finally set for the Real Estate market. My property contacts in Florida tell me this may not happen too soon given the complexity of the crisis but the current “mixed” real estate story has a silver lining. The FED will not raise interest rates aggressively until bank balance sheets have stable “mark-to-market” property valuations. When that happens stock market advances will begin to be tempered by rising interest rate trends, but we are not there yet. Thus as long as monetary policy continues to be accommodative I see no reason why Wall Street will not enjoy a traditional “happy” festive season and a New Year that beckons “new hope” and higher prices. Thus the traders mantra will not be “buy low and sell high” but “buy high and sell higher.” The wall of worry has arrived. The easy money has been made.

ETF: USO. Weekly


ETF: GLD.  Weekly


ETF: SLV. Weekly


By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin and holds a Batchelor Degree in Accounting and Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in 1989. in Belmont, California where he lived for 6 years. He developed the Wealthbuilder investment and trading course over the last decade as a result of research, study, experience and successful application. This course marries Fundamental Analysis with Technical Analysis and focuses on 3 specific approaches. Namely: Momentum, Value and Pension Strategies.

Mr. Quigley is now based in Dublin, Ireland and Tampa Bay, Florida.

© 2010 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules