Hello MarketClub members everywhere. It has been quite a week with gold, stocks and oil all moving in the same direction and that is higher. I have said this before; it is sometimes best to just to go with the flow and not try to overthink or inject what you may feel fundamentally about the market.
I thought I would do something a little different this week by including some questions from the MarketClub members blog.
Here are just a few of the valuable questions and feedback we have received in the last few days from our members. We are not publishing member names because after all, we all appreciate a little privacy
A member reflects on their thoughts about gold
"The gold seems like in a trading range now, the overall market does not seem to be convinced that it is good to stock up more gold with the interest rate may go up. I still think the gold will go up a bit more, but it may come down more first. The daily trade triangle seem to alternate between green and red on a daily basis."
A good question from a member
"Adam, could you continue with your analysis every few days on Kinder Morgan (KMI). Its a very interesting trade in relation to crude oil prices. Its seems that KMI is currently locked in a trading range between $20 and $21 as if the stock is deciding whether it should go up or go down..."
Great feedback on KMI from one of our members
"For what it's worth, here's what I've been doing with KMI. I've owned the stock (nice dividend) and OTM call options on it since February. I bought more stock and quadrupled my options on it a couple months ago. I believe it is getting ready to go much higher and if it shows signs of doing so, I will buy more stock and quadruple my options again.
KMI is a "slow climber," almost like a utility, so patience is required, but the direction of least resistance at this point appears to be up. As usual, however, any signs of medium-term weakness and I will hedge my position; any sings of long-term weakness and I will exit my position. Hope this helps."
In today's video update, I will be covering gold (FOREX:XAUUSDO), crude oil (NYMEX:CL.U16.E), the major indices and Kinder Morgan Inc. (NYSE:KMI) and Barrick Gold Corporation (NYSE:ABX).
Stay focused and disciplined.
Every success with MarketClub,
One thought on “What A Week: Gold, Oil and Stocks All Higher”
I think the stock market is running out of steam and topping out! Here is what I anticipate through Labor Day Weekend using the S&P: Expect yet another day of record-breaking highs on Monday, S&P to hit 2,190 to 2,193 area. And then starting Tuesday and lasting into early next week a quick-hitting 3% correction, S&P falls back to around 2,130 area, tests its former highs. The 3% correction won't last very long. The stock market will rebound on low volume and spend the last two weeks of August lazily attempting to retest the top again, the S&P should head back to 2,180 to 2,190 area. If the market fails to break the top and the S&P fails to eclipse the psychological 2,200 mark, then market will start selling-off again. This will occur around the very end of August or beginning of Sept 1st or 2nd, especially with the next employment report. There is an upward trend line that Adam needs to start pointing out as resistance in his videos. Draw a line from the February 16th low to the June 26th low and continue that line up and to the right. Pretty soon...you know there's going to be a third reference point somewhere along that trend line. Yes, you know that trend will be tested again. Upward trend lines are eventually meant to be broken too! If the S&P breaches that trend line at the beginning of September, then it will be game...set...match...bull market over! Say good bye to DOW 20,000, S&P 2,300, 2,400...whatever. Look for the market to begin a rapid descent after Labor Day Weekend. The lagging financials and transports should be sending warning flags too. That is something Adam also needs to point out besides oil and gold.
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