Midweek USD, Oil, Gold and SP500
Source: Chris Vermeulen, TheGoldAndOilGuy (7/15/10)
"Will selling pressure hit stocks and commodities?"
I have put together a short video covering all of these investments. The following is my Coles Note Version.
The dollar is way oversold and looking ready for a multi day bounce. This will put pressure stocks and commodities.
Oil is trading at resistance and with the Fed minutes reported today saying they are somewhat concerned about the economy still this pulled oil down late in the day. Also if the U.S. dollar bounces it will add downward pressure to oil.
It's a tough call on gold because it could go either way here. . .it could be seen as a safe haven in stocks fall in the coming days; or, if the U.S. dollar moves up, it will put more downward pressure to gold. I feel money can be made in a breakout to the upside or downside (explained in the video).
Stocks are overbought across the board making things look toppy. We are seeing good earnings from Alcoa, CSX and Intel but the stocks are selling off on the good news, which is a bearish sign for the equities market overall. The SP500 gapped up on Tuesday and has been trading sideways in a tight sideways channel building power for the next breakout. Tension is building and we should see a breakout from this channel tomorrow (Thursday). The Odds are pointing to lower prices but only time will tell.
You can view my short technical video which explains all this.
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