Market keeps plowing ahead

• Posted by admin
• on February 28th, 2010

Market has shrugged every bit of bad news in the past few days. The leading stocks are behaving nicely. The consumer confidence dipped but the retail sector is showing “no worries” attitude. It’s not the economic readings that would make anyone money but the stock market action. The action remains constructive and the path of least resistance remains up. My thinking is that either fundamentals will play catch up with the market or this would turn out to be one giant bull trap. I am not concerned about the bull trap aspect yet.

Gold and the stock market have been moving in lock step recently. Gold price action has been scattered lately. A few days back it got rejected at 1125 and it’s knocking at it again. I think if and when it breaches 1125 successfully, the door to 1200 opens up. If the correlation between Gold and market continues then it should also signal that market is on its way to the recent highs.

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