Without a doubt, the most important announcement coming out during the day is going to be the FOMC Meeting Minutes coming out of America, as they will influence the US dollar in the US stock markets. By doing so, it should essentially move the entire world’s markets. With this, we are paying quite a bit of attention to the United States, as the Americans should lead the way.
We believe that the US stock markets in general have quite a bit of bullish pressure underneath them, so we are call buyers on supportive candles. We believe that all three indexes should continue to grind away higher. Also, you have to keep in mind that we are getting towards the end of summer, so sooner or later the liquidity will pick up and we will see big-money decide which way the market wants to go. At this moment though, we are very positive on US indices and stocks.
Precious metals recently had significant bullish pressure, but we are starting to fall from here. We believe that precious metals will continue to soften, and as a result we are very bearish of both gold and silver in the meantime.
We also recognize that European stocks have a good chance of rising as well, simply because there is no income to be had in the bond markets. As long as we keep up a very low interest rate environment, it makes sense that money continues to flow into stock markets. Also, you have to keep in mind that the European Union isn’t anywhere near as bad as a previously was.
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