The S&P 500 appears to be making yet another attempt at hurdling the 1850 resistance level, which it has already failed to do at least twice over the last several weeks. Despite the recent ‘rebound’ in U.S. stocks, the FTM Market Barometer remains RED (‘Market in Correction’) as overall volume has been low, along with several other negative market indicators. At this point, we are waiting to see if the S&P 500 index (the most broadly watched U.S. stock index around the globe) can fully penetrate and scale above the 1850 level. If so, much of the big institutional money (mutual funds, hedge funds, etc.) will likely pile in and drive this multi-year bull market even higher. However, if the S&P 500 fails at its current attempt to rise above 1850, the index could plunge once again. If this occurs, pay very close attention to the important 1750 support level. If the S&P fails at scaling 1850 and plummets below 1750 in the process, massive selling will likely ensue. Current market conditions are very difficult and there is presently more downside risk than upside potential in our estimation.
Meanwhile, gold prices are rebounding strongly so far in 2014. After a terrible down year in 2013, it appears buying interest is surging for gold. The ‘breakout’ in gold prices occurred at the beginning of this month. If you bought anywhere near the absolute bottom of this current rout in gold prices (around $1180), then you are likely very happy as gold climbs. If you do not currently own any gold, it is highly advisable that you consider adding some exposure on any future price dips.
Gold headed for the biggest weekly advance since August as concern that the U.S. economy may be slowing down. Silver is set for the longest rally since March 2008.
Reuters is reporting that “the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis.”
Growth in Germany, France and the Netherlands beat economists’ estimates in the fourth quarter and Italy resumed expansion in a sign the fragile euro-area recovery is gaining traction.
BTC China CEO: “So that’s what’s amazing about bitcoin, it’s truly a global phenomenon, very resilient and the reason it is resilient is because many people want to buy into it. Whenever the price dips, we see people sitting on the sidelines eager to buy.”
1. You let your political views guide your investments without realizing that the market doesn’t care who you voted for or which cable news outlet you find more honest…
A report just released by the Australian Strategic Policy Institute (ASPI) said that China’s emergence as a major economic power will pose great challenges for the global community.
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