S&P 500 and the Dow was up 2,18% yesterday. Nasdaq was up 2,26%. What a bullish move! The biggest move since the beginning of this year. The biggest move comes from the Russel 2000, which is up 2,50%. VIX dropped down -15,92%, and ended up to open at 16,48.
All this because of the positive news we talked about yesterday. Obama have invited the republicans and the democrats to discuss the debt limit and both parts seems to be positive about a short term solution.
When we see a bullish move like that, we often see gold goes in the opposite direction. Gold broke its important $1300 level, and are now trading at $1283,7. It seems like the gold will continue it`s downtrend.
The gold prices are in trouble. It`s probably a gold price crices. We have had a downtrend for a while, and it seems to continue. The comming hyperinflation is imminent, and the FED`s balance sheet problems goes in the opposite direction of the goldprices. That is nasty for the precious metal.
At the same time we can see a rebound in the U.S dollar, and that is often a very bearish factor for the gold index. Jobless claims showed a rise in claims yesterday. The data was skewed because the reports did not include all 50 U.S states.
Micron Technology (MU) have been overbought since early september. What a bullish stock that is! Micron Technology Inc is one of the biggest and best providers of advanced semiconductor solutions. They manufactures and markets DRAM, NAND Flash and NOR-flash memory and other innovative memory technologies. Micron falls after Q4 earnings miss.
News for today: Preliminary UofM Consumer Sentiment at 9:55am.
Today I have added a chart with DJ, Nasdaq and S&P 500 compared with the gold bugs. This showes us that it has been a terrible year so far for the gold stocks. Gold traded at $1700 at the beginning of this year. Barrick gold Corp Inc traded at 47 in january and are now at 17,84. Wow!
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