|
UPDATE 04/01/07
STOCKS:
There are few important market cycle forces due in
the next few days. In my opinion the market will
take a direction soon, where it wants to go from
here. Based on market fundamentals it's difficult to
predict what the move will be, because on one hand
the economy is better then accepted but inflation is
worst then excepted. In addition the geopolitical
factors in the Middle East - and therefore the price
of oil - can change for the better or worse.
Based
on cycles the odds still favor an eventual move to new all
time highs this summer. If Friday’s low at 12,240
holds, then another advance may be unfolding that
can send the DJIA back above 12,500. Resistance is
at 12,370 – 12,420.
It is also possible that the correction is still
underway and will either continue for some time in
the form of a triangle or a move down below the
March 14th lows will take place. If the
March 14th lows are broken, it is
important for 11,700 to hold.
There is a cycle low due in late April or early May
and several longer term cycles due at the end of
this year.
T
BONDS:
June bonds have sold off to the lower support zone
mentioned last week. I would like to see a rebound
in prices next week. There still hasn’t been any
reason to change my bullish outlook for this market
in 2007.
GOLD:
There isn’t much to add to April gold. As long as
the uptrend at $ 650 holds, it can still rally to
the $ 690-700 area. Gold futures are basically
unchanged from a year ago.
As long as the XAU trades in the 130 – 145 range,
the odds will increase that a triangle is forming.
It may take several months to finally resolve.
Regards and Good Luck,
Jay
Sanderson
Moshe Kahan
TimingStock.com
To
see Jay's past Market Commentary and other products,
please click here
www.reliablestockcycles.com
________________________________________________________________________
Commentary Archives
Long term cycle is bullish -
1/06/07
Next Cycle Low is due In March
-1/27/07
Market still positive -
2/05/07 | 
