StockTrendCharts newsletters provide overview and forecast for major classes, sends every week.

 

The market went up almost for the whole week, however the major trend is still downward.  There could be a chance that the market can rally from here to recover some of its loss and makes a trap for the bullish ones.  I don't expect a sudden crash like in 2008 but an unavoidable downward trend is expected.  I tend to believe that the recent drop since June was mainly affected by the end of QE2 rather than reflecting the health of the economy.

 

While major trend of this asset class still shows upward, the intermediate trend looks like topping and possibly trigger a sell off soon.  Since the USD is in the uptrend, it makes sense for people to move their money to other sound assets like commodities.

 

This is another safe heaven alternate to bonds.  I would think if I own US dollar, why not put it in TIPS or Bonds, the only reason I would hold US dollar in instead of bonds is because I would like to move money into other sound investments and it seems like this is happening.  People were moving money out of the stock market and staying in money market because of uncertainties.  Again, if US dollar continues to go up but bonds do not, then that implies people are wondering where they should invest next.

 

Gold started to correct since middle of August and this triggered the intermediate term cycle of correction which means it will take months to finish the correction.  I think gold will take 2-3 more months to correct from now on.  In the mean while if gold holds pretty well during this period, that means we will see higher prices after the correction and the gold bull will be still intact.

 

I would consider this asset class to hold pretty well while we experience volatility in the other markets.  I would consider this to be bullish because people will feel more comfortable to put their money in commodities.  This asset class still shows moving upward on the major trend and a downward in its intermediate trend.  I would expect that long term investors will be moving money in this asset class while the traders will be taking profits.

 

Thank you for those of you who offered us your efforts to help make the site grow and hopefully we will improve overtime to make our site even better.  Thank you for your support.

 

Have a Great weekend,

Raymond Tsang

StockTrendCharts.com