Exposing Ideas to the Envelope of Serendipity



Contact moo at: bluechipbulldog@gmail.com



Wednesday, March 17, 2010

Top 'o the Morning (but likely not top of the market)


While it's still too soon to know if gold and the precious metals sector are ready to resume their uptrends, a glimmer of buying emerged in the group on Tuesday, raising the hopes of many a gold bug just in time for St. Patrick's Day. The dollar slumped as the FOMC promised "exceptionally low levels of the federal funds rate for an extended period," while highlighting signs of stabilization in economic activity and improvement in financial markets. Stocks took off on the release of the policy announcement, and after the usual Fed-day gyrations, ran into the close, setting new 2010 highs on most of the major and many sector indexes. While markets are short-term overbought in some areas, the McClellan Oscillator has managed to work off some of this through sideways consolidation and is no longer registering extreme readings. 


NEM and many of the miners are starting to set up nicely. 
That's it for now. While market action is clearly bullish, common sense should be relied on as the number of up days mounts. Protect gains up here while recognizing the trend and climate that is in charge for now. Buying the dips remains the name of the game for now.

May your blessings outnumber
The shamrocks that grow,
And may trouble avoid you
Wherever you go.


Trade well.
-- Brinkley
__________

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