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created: 2007-10-15 08:34:48
WEEKLY REVIEW AND OUTLOOK
*********************** WEEKLY REVIEW AND OUTLOOK OCTOBER 15TH 2007 http://www.swingtradinglab.com/ For your full copy please log-in to teh website *********************** Gold & Oil are still outperforming the market each stacking on in excess of 2% on the price finishing at $751 and $83 respectively. The XAU index galloped up gaining 4.6% as the threat of inflation looms and the USD is ever weakening. Earning seasons has started and reports have been mixed, more importantly economic reports released this week included retail sales which proved better than expected September retail sales rose a slightly stronger than expected 0.6%. Job layoffs remain low and all up the news was OK. The market indices made some moderate gains and the oil heavy DJT was the only one to hit negative figures. The worry is still about the credit market and banks, sub-prime and the possible ripple effects. The TNX gained some ground and its starting to come back adding more points with future outlook becoming more apparent with expectation of rates increasing in the longer term despite the Fed juggling rates to avoid any chance of recession. My AD-Dec lines are in peak mode and I would expect that the market may just follow and we’ll see some steam let off, particularly when we have some companies reporting 3Q. Steel producers are overweight and need to get out some. Tech stocks have been outperforming of late and if not for them and miners we would be worse off as the financial sector has taken a real hit. This week will be a reactive week with earnings reports and I’m expecting a mixed bag of goodies this week. All the majors are in peak formation so that would favor more downside moves. There are some issues associated with oil supply and if this becomes an ongoing problem throughout the week then equities will suffer and gold and oil will rise. Interesting isn’t it! Good Luck Rob Miraglia Founder http://SwingTradingLab.com/