Tuesday, September 28, 2010

Phil Flynn: Take No Quarter, Give No Quarter

Or at the very least beware of the end of the US fourth quarter. The quarter was a dream especially the month of September for stock market and precious metal bulls. Yet it seems as the quarter is coming to an end the markets with the most strength are running out of steam as funds and traders look to book profits as the markets failed to take out key resistance. For gold and all the talk about $1300.00 per once, the market never officially made it there and at the end of the quarter it seems that close is good enough. So unless we get some bearish news on the dollar it seems that 1300 an ounce won’t be hit at least until the next quarter. The stock market is rounding out a profit taking top as traders look to book profits from the best September since 1939.

Yes this is a September to remember but also remember that this is a profit taking business and it appears that unless the data gets us real excited the correction should start. The market in gold and stocks has been helped by the Fed. Ben Bernanke and his band of money printing merry men have engineered this latest gold and stock market rally. Now if only they can get it to trickle down to the oil market. Oil prices, while higher, are a bit less inclined to get excited about the recent stock market strength. With supply near record high and high stock prices not necessarily being reflected in real oil demand oil traders are less.....Read the entire article.

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