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created: 2008-03-16 07:18:45
weekly Update
********************************************** WEEKLY REPORT 14th March 2008 http://www.swingtradinglab.com/ Don’t forget to get your full PDF copy of this report by Logging on to the site and getting the latest from the archives reports. ********************************************** Monday we started on down note and by Tuesday we had massive buying that was quickly brought into line and Friday our fears came through as reports of Bear Sterns one the largest institutional banks at near collapse. The SP was down this week shedding 20 points whilst many of the other indices still managed to hold a half point. Gold and Silver Index XAU had a nice earner of 5% as gold hit intra-day highs surpassing $1000 AND oil also exceeding $110/bbl. We are expecting further declines in rates next week so the TNX followed with a 2.84% drop or 0.1 points. This will once again affect the USD and we will see further declines in the USD, but if stocks pick up by the week’s end that may swing around. We had some serious news come out on Friday as investors saw fit to remove their monies from some of the largest banking institutions in the USA. Bear Sterns one of the largest investment banks in the world is now coming under extreme scrutiny as allegations are coming out that it will collapse under pressure from the sudden and massive withdrawal of funding by investors. The US Fed has come to the rescue once again as did rival banks such as JP Morgan to assist if Bear Sterns was to collapse the results would be disastrous for the economy. As for my synopsis this week we have had some consolidation and supports have held. Last week I mentioned that if supports don’t hold at these levels results would be massive sell-offs. That has not occurred…this week, but we have some serious issues to face next week and the FED will back in the picture as it will need to throw more money in the pit to feed the hungry animals and keep them going for a little longer Next week brings about more data on housing sales and data so we keep a watchful eye on that if results are better than expected although we still doubt that this to be the case. Only gold and gold stocks are advancing and in my opinion a little over-bought, be weary as my STL#1 is providing a warning on the XAU. My XIX indicator has been quite good and we may have a little less volatility coming our way and that may translate in buying power. Sectors to watch – Financials and Industrials, Utilities & Telco’s. An interesting first quarter to the year. Good Luck Rob Miraglia Founder http://SwingTradingLab.com/