Lets start out with my favorite money maker, Gold. I see the bullion bull run continuing, for now! The risk around the globe continued to push prices for what is now being called the world’s second reserve currency into fresh highs. The equity markets just continue to stumble and fall flat on their face. It is really no wonder that the trend for this precious commodity, GOLD, remains up. As a matter of fact demand has increased to such an extent that it was just recently reported that US and European investors scooped up nearly 150 tons of Gold in 4Q 2008. Folks that is a more than 800% increase from 4Q 2007. We have to remain aware of the possible double top that we are sitting at right here at 1000. If we can’t bust through the 1030 area with some conviction we might be headed lower to consolidate for another try down the road. The support zone I want you to watch the most over the next few trading sessions is the 930/935 area. If we can get through the 1030 area this week we are entering uncharted waters and we will just have to make sure we have stops firmly in place to protect our gains.
As far as the markets are concerned, well, OUCH! This is also some very tricky times. The S&P 500 based out above its low from last November and potentially setting the stage for a double bottom from around 750. If we fall below that I think we could go all the way down to 650 in the near term just to find some good support. The Nasdaq managed to close nearly flat on the day. WTI crude oil prices have now tried three times to break below the $32.00 per barrel level, only to rebound hard again.
Some key data to watch this week. Tuesday starts it all off with consumer confidence and multiple home price reports. Wednesday will have existing home sales and the weekly oil inventory number. Durable goods orders, initial jobless claims and new home sales highlight a very busy Thursday. Friday rounds out the week with GDP, the Chicago PMI and University of Michigan consumer sentiment. Our buddy Ben “Helicopter” Bernanke will give a testimony in front of the Senate on Tuesday and the House on Wednesday!
