As of Friday's close of the financial markets, things were back to about evenly debated; whether we were at last in a rally which 'had legs', or whether the market would decline from here. I called my friend Robin Landry, who manages money for clients from his office in Shawnee, Oklahoma and asked him what he sees ahead.
As usual, there are two competing Elliott wave counts to be considered. Under one count, we get a decline next week and into the following, but we hold short of the recent lows around Dow 6,626 and then start a major rally from there which will see a major upward thrust by oil and the precious metals. The move of oil this week over $50 certainly argues for that case, as well as the strengthening gold prices. But on the other hand, oil weakened toward week's end.
The alternate count that Landry is watching is that the decline picks up speed next week and takes out the 6,626 recent Dow low, and from there were go down to the 5,800 level, or in a worst case 4,400 on the Dow and then we get the rally which again will feature oil and metals, but there would be one hell of an entry point if gold gets down into the upper $30's and gold were to do a short, nose-bleed inducing drop to the $700's, or even $650.
No comments:
Post a Comment