Crude which ran up because of massive Global Quantitative Easing to stabilize economies has recently slid on somewhat stronger US Dollar (Crude is Denominated in $$$) as well as talk of lower rates becoming the norm in Euro Land for the time being. Also the dreaded double dip recession talks have not helped either.
Or can it be that Goldman is just selling?
Gold is not doing much. The inflation talk has subsided now that the economy is back in "Bad and Getting Worse mode"
The S&P 500 "Really" needs to make a stand. Its already broken its 50 DMA, and the 200 DMA at 885 or so needs to hold or this market is in real trouble. I hear many nitwits (CNBC) who stated that the 50 DMA crossed above the 200 DMA 2 weeks ago was a clear buying signal, they were so wrong, the "Golden Cross" only triggers a buy if both moving averages are sloping up. The 50 DMA was going up, but the 200 DMA was not. Sorry Charlie...Wrong again!
I have noted before that Energy/High Tech, not Financials would lead us down
As you can see Energy is feeling the pain of lower crude prices as well as reduced capital expenditures.
If Crude corrects to the mid to low 50's, I would have to say that "You don't want to be in Energy"
Oil Service stocks are in for some serious pain if buyers don't come in quick.
High Tech has held up quite well. The money has to go somewhere. But if the Crude corrects further, the S&P 500 will take it on the chin as so will the NASDAQ.
Have I told you how much I hate the Banks? These are lousy investments for the next 5 years. I don't get it, 6 months ago, we all knew the banking model was busted, so why try to go back to the same old busted model that got us in this mess from day 1? The entire US Financial System needs to be gutted from the inside. There is no way out of this mess until this occurs.
Boy...You hate the Banks. What will convince you that the banks are a good investment?
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