Finally, after weeks of gold following the stock market up and down, there is a break. Finally gold goes higher as the stock market plunges. Gold today closes about $900 per ounce, and the stock market breaks below $9000 (The Dow Jones Industrial).
The break signals the true panic in the markets. As the financial markets hit bottom, they will rebound, but not before taking a few more big names with them. This bottom will mark the actual return to confidence. Expect 6-8 weeks of more down movement.
Also, it appears the late-in-the-day-jump in the price of gold is related to Citibank walking away from negociations with Wells Fargo over Wachovia.
NOTE: if GE tanks tommorrow (2008/10/10), we will see another groundhog day. This means gold will be up and the market down. If GE hits the mark, there will be buying. GE reports before the market opens.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment