December 14 FOMC Interest Rate Decision - Consensus Estimates and Futures are Indicating an Increase
Stocks Hold to Buy - The Dow Jones and SP500 indexes continued higher last week although less and less NYSE stocks were participating in the uptrend which is the advance-decline line. The Nasdaq has been lagging but is forecasted to head higher too near-term. Nonetheless, of the generally weak internal indicators, the major market indexes are forecasted to continue higher for the time being.
Bonds Buy Short-Term Sell Long-Term - The 30-year T-Bond continued to grind a little lower last week. 147 to 148 is first support currently with further major support at the 145 area. After the severe sell-off after the election results, the forecast short-term is for a bounce back higher to possibly the 161 area. Longer-term the forecast is down. If the 145 support price area breaks look for much lower prices again.
US Dollar Index Hold Short-Term Possible Buy Long-Term - The US Dollar Index continues to hold support with the potential to head higher. Near-term support is 99.695 to 99.960. Longer term major support is at 96.00. On December 08 the index hit 99.49 intraday before closing higher at 101.12.
Gold Silver Buy - Gold continues to consolidate in the 1151 to 1161 area. Sentiment is extremely negative on gold and silver currently after the large sell-off after the election. 1198 is current resistance, and if and when this price level breaks out, the forecast is for higher prices. A buy long position at current prices with a 8% maximum stop-loss would be a very low-risk-high-reward trade to make on gold and silver right now.
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