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Friday, July 30, 2021
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Stocks and Gold are in an Up Trend: ‘The Trend is Your Friend’

#gold #stocks #BullMarket #Fed #economy #recovery #stimulus

$DIA $SPY $QQQ $RUTX $XAU $GLD $USD $VXX

The DJIA is trading at record highs, having broke the 30,000 resistance mark last wk for the 1st time ever.

The stock market’s epidemic chaos is over, and investors look forward to continued growth down the line.

Now, at the same time stock were driving North, gold tested to 1,780 and bounced.

How I see the action

Much of the euphoria on the amazing V-shaped economic recovery, hopes for a COVID vaccine, the end of the trade war with China, near Zero interest rates, and more fiscal and monetary stimulus.

Markets are pricing in the positive effects of those elements as they always do.

The S&P 500 is growing on the momentum of the tech stocks: Microsoft, Apple, Amazon, Google, and Facebook/ And the RUT is up almost 500% off of its March lows and still has room as the domestic business issues catch up with the international stocks, the next leg of this Bull market will be led by the financial, materials, and energy.

The economy is growing faster than anyone expected, and although there are lots of people unemployed, that is getting better monthly overall on the back pf President Trump’s policies.

Initial estimates of US GDP in Q-3 indicate that the US economy grew 33.1% Vs the decline of 31.4% in the 2nd Quarter instant recession.

The US is not in recession, and we are expecting strong growth ahead despite some of the draconian restrictions happening on the east and west coasts In short, the US economy is doing just fine in here. And the stock market is confirming it.

Markets have been buoyed in large part by the Fed’s monetary aid/relief/stimulus. That stimulus monetized the massive spending from the COVID relief bills passed by Congress.

The effects cheap money has driven the benchmark indexes due North and that has affected gold markets too.

Gold’s price rise was due a falling USD, central bank buying and investor money adding to positions in gold as insurance.

With future aid/relief/stimulus a certainty plus continuing monetary stimulus from the Fed, there is the likelihood that gold’s price will continue in it Bull trend that began last December.

Investing in gold is not like investing in stocks, as gold is not a get rich quick scheme, it is part of a long-term investment plan to build and protect wealth long term. And with all of the positives mentioned above demand for gold should increase from investors looking to protect assets and hedge against coming inflation. Thus, resulting in an increase in the gold price, as investors continue to buy the precious Yellow metal.

Thursday, the benchmark US stock market indexes finished at: DJIA +85.73 at 29969.46, NAS Comp +27.82 at 12377.10, S&P 500 -2.29 to 3666.73

Volume: Trade on the NYSE came in at 980-M/shares exchanged

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias.

  • NAS Comp +37.9% YTD
  • S&P 500 +13.5% YTD
  • Russell 2000 +10.8% YTD
  • DJIA +5.0% YTD

Looking Ahead: Investors will receive the Employment Situation Report (NFPs) for November, the Trade Balance for October, and Factory Orders for October Friday.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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