Sample

UPDATE  07/14

STOCKS:

The DJIA finally broke out of the trading range above 13,675 last week turning the short term outlook to positive. It will be important for the market to stay above the previous resistance level mentioned above if the rally is to continue. Upside target is now 14,150.

There will be several major earnings releases next week which could provide some volatility.

2007 could be a key year for a major decline based on anniversary dates. For example, the declines in 1857, 1907, 1917, 1937, 1957, 1987 and 1997.

I am bullish above 13,675, neutral below and bearish below 13,250.

BONDS:

September bonds didn’t do much last week and are in the middle of a short term trading range between 106 and 108.

A move back above 108 is needed to turn things more bullish, while a move back under 106 will lead to a retest of the previous lows under 105.

GOLD:

The XAU is currently breaking out of a long triangle formation and should lead the gold prices higher this quarter.

The XAU is up 16% from the 131 low 2 weeks ago, while August gold is up only 4.5%.

My upside target for the XAU is 185 this year. August gold should rally to new highs above $ 750.

  Regards and Good Luck,

    Jay Sanderson
    TimingStock.com
 

To see Jay's past Market Commentary and other products, please click here www.reliablestockcycles.com

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