Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Palladium Surges above $2,400. Is It Sustainable? - 27th Jan 20
THIS ONE THING Will Tell Us When the Bubble Economy Is Bursting… - 27th Jan 20
Stock Market, Gold Black Swan Event Begins - 27th Jan 20
This Will Signal A Massive Gold Stocks Rally - 27th Jan 20
US Presidential Cycle Stock Market Trend Forecast 2020 - 27th Jan 20
Stock Market Correction Review - 26th Jan 20
The Wuhan Wipeout – Could It Happen? - 26th Jan 20
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Weekly Financial Markets Review -The Corrective Rally Continues - The Worst is Not Over !

Stock-Markets / Financial Markets Mar 11, 2007 - 12:08 AM GMT

By: Nadeem_Walayat

Stock-Markets

The week saw the Stock Markets rally, the Dow ended up at 12,276, FTSE 100 index at 6246. The asian stock markets, including China also rallied. In our analysis immediately following China's mini crash, I suggested that the Stock Markets would make a bottom during the week and start to rally towards targets of 12,525 for the Dow Jones and 6300 for the FTSE. Following which another down leg would begin. Stock Markets follow China Lower - What to expect next as China's crash continues in Asia 27th Feb 07.

Back to the week that was -


The plunge in Gold had caught many market participants off guard, so there was a flurry of activity in trying to determine whether the Gold bull was still in tact. The conclusion of which was that the fundamentals for the gold bull market were still intact. The most bearish picture painted for gold - GOLD Elliott Wave Analysis - Is Gold Really Safe? We Think Not , suggested that gold was headed much lower in the immediate term. Of many more bullish gold articles , Gold and Silver Bull Market Set to Continue - Six Reasons Why covered the key reasons of why Gold should continue to rise, despite any short-term weakness.

Speculation of a US slowdown and future Fed Interest rate cuts continued, however this is usually a cue for Gold and other metals to decline in price, in the article - Fed Signaling Future US Interest Rate Cuts - Gold to benefit , analysis suggests that Gold may rise strongly when the Fed starts to cut interest rates, the key reason being that the US dollar would fall sharply, leading to a sharp spike in most commodities as they are priced in US dollars.

The bulk of articles concerning the future direction of the Stock Market, concluded that there was more selling to come and that the current rally was by and large corrective. Stock Market Rallies after last weeks slump - The Worst is Far from Over! , The most bullish article was Stock Market Analysis - A Major Crash...or a Major Bottom?

The most significant factor impacting on the financial markets is the continuing bearish news concerning the US housing market due especially the impact of failures in the subprime mortgage sector of the finance sector (Subprime mortgages hit Banking sector and likely to lead to further Stock Market Falls) . The next wave of the US Housing Market Crash - Apartment REITs suggests a new wave of financial collapses are in the offing, as the housing crash spreads to the apartment REITs sector.

The article "The Quiet Energy Crisis as Mexican Crude Oil production tumbles", highlighted the precarious situation in Mexico's oil production industry, which has seen a fall in production fal by 500k bpd, this is already leading to rising gas prices in the USA, which look set to accelerate in the coming months.

On the Education front, several articles were published both from a technical and from a psychological perspective. The two that stand out the most are - Trading Doctor - When it All Falls Apart - Coping with Losses and The Secret to Successful Trading - Using Rules to Time Your Entry

Make sure to visit the site regularly for the latest analysis on the direction of the stock market this coming week, especially as the next leg of the China Mini-Crash, could just be around the corner.

Profitable investing & trading for the coming week.

By Nadeem Walayat
Editor, The Market Oracle

(c) MarketOracle.co.uk 2007 - All Rights Reserved.


© 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