Monday, June 4, 2012

Cyprus Next in Line to Seek a Bailout - Market Analysis for week of June 4th 2012 by Singaporeseeds

Daily chart for S&P

Daily chart for Dow

Daily chart for NASDAQ

I wasn’t able to blog about the market last week as my in-laws were visiting. We did a road trip from London to Newtonmore in Scotland. We saw the British Dance Open in Blackpool and visited St Andrew’s Old Golf Course in Scotland. Also went to numerous sightseeing spots along the way. This Thursday, I’ll be going to Rekjavik, the Golden Circle Route and will be feasting on the delicious seafood in Iceland.

Anyway back to the markets….I saw an excellent short entry for the markets on Monday that I took just before I left on the road trip. The markets dropped like a brick over the week and we entered oversold conditions on Friday. We might bounce as far up as 1,345 over the next few days before continuing down to 1,150 for S&P. It is still a downtrend and any rallies will be better entries for shorting.

Recently there’s speculation that Cyprus may be seeking a bailout from the EU. This and a few other really pessimistic news coming from Europe should be enough to keep the market from rallying much.

Daily chart for Gold

Quote from my market analysis 2 weeks ago:
“We had gold bounce off support at 1,546 last Thursday. I believe we should see gold test this support again within a week or two before beginning a new rally.“

Gold tested support over the following 2 weeks before making a huge one day rally spike last Friday. This is the beginning of the next rally for gold. I was unable to enter a long position as I was driving somewhere in between the Grampian Mountains gazing at the breathtaking views of the loch and glens of Scotland.

We should see gold rally over the next few days and then come back down to test channel support. That will be a good and safer entry for the next leg up.

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