To recap the market moves of last week, The president of the European Central Bank (Draghi) came out with news stating that he would not let the European Union fail. The following day the German Chancellor (Merkel) and the French President (Hollande) both came out with statements. They vowed to do everything to protect the Euro.
This Bit of news had many commodities and stocks in the Green. This week we will have more news out of Europe and we will also see Ben Bernanke address our economy. We will also see jobs numbers this week. This is important because there is chatter of another round of Quantitative Easing. The idea is to print even more money and inject it into the system. If this does in fact happen, we will see an inflated dollar that has diminishing value, and we will potentially see gold and crude on another rally.
I see the markets trading sideways this week with much of the recent rally factoring in the potential for another round of Quantitative Easing. In my opinion Crude Oil shows major support down at about $87.00 with resistance at $93.00. My pivot for Crude is $94.00. Gold has also been trading sideways inching up on last weeks news. $1600.00 looks to be a new support level with $1640.00 showing resistance, a move above $1640.00 should see the Gold market rally.
“BULLS RUN THIS MARKET!”
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