As for much of 2012 to date, the US indices are the place to be right now. A further day of convincing buying occurred yesterday and I am therefore looking to establish long positions once more. I would like to buy intraday dips and I see the three main US markets heading back to and through their highs, and sooner rather than later.
By contrast, the FTSE and DAX both look very ugly. Indeed, the only reason I am not more bearish on them is because of the strength of the US indices. But just because the US is strong doesn’t mean that these markets are not going to suffer. The European Central Bank is going to need to take massive further action to prevent carnage in the single-currency area and beyond, in my view.
Click here for analysis of some leading equity indices.
Despite my call for a large rally in precious metals beginning in 2012, I am far from convinced that the latest strength seen in gold and silver represents the beginnings of that move. I recorded a short video on silver yesterday explaining why I did not believe a low was in, and also my criteria for getting long of the precious metal once more: http://bit.ly/IWwDoW. I think another retest of the recent lows in each metal could be in order and am therefore on guard for reversal before long.
Click here for analysis of some leading commodities.
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Dominic Picarda is a Chartered Market Technician and has co-ordinated the IC's trading coverage since 2006. He is a regular speaker at trading and investment events and also holds the Chartered Financial Analyst qualification.