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UPDATE 07/09
STOCKS:
The
DJIA moved back up towards the upper band of the on
going trading range last week. I still see the
upside potential as being limited at this point. The
real action will probably occur yet in the fourth
quarter as I am expecting a significant decline to
take place.
There are several historical reasons as well as
longer term patterns that are pointing to a decline
coming later this year.
Indicators are not yet supporting a major decline.
As I
have previously noted, I will become more bearish on
a move below 13,200.
BONDS:
September bonds did reach my first target of 108 and
then sold off sharply breaking the weekly uptrend.
I didn’t expect this market to have that type of
reaction, but will look for higher prices until the
previous lows can be taken out.
I
continue to see a large build up of commercial long
positions which should prove to be bullish this
quarter.
GOLD:
Gold
and the XAU continue to improve and are building a
case for one more large rally before ending their
initial bull market moves from 2001.
August gold should test the $ 670 level this week
and the XAU the 148 level. I would expect a minor
pullback after these levels are seen. GDX is
starting a nice up move and will be a good performer
as long as the gold stocks rally.
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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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 | 
