Gold got hit, oil reversed, the dollar strengthened, stocks sold off from their early highs, and bonds reversed from their morning shellacking.
What does it mean?
Just that traders move markets!
And they needed a weekend break.
But those hiding in gold, as the currency of the world, will find that the world's powers, don't want them hiding in it.
And despite Goldman's pimp of oil, the economy needs oil to rest at these levels.
But there isn't any rest for the weary, which is those that are short. The macro picture is improving, and their cries of Armageddon now just seem, well apocalyptic!
I pimped TIE and AA on March 19, when they were both in the 5's:
The aluminum and metal horserace
AA 5.48
TIE 5.22
Now that they both have doubled, I think Wall Street will find something in those numbers! But this time, with some faster momentum! And Alleghany Tech (ATI 40.85) can also go along for the ride!
It's the plane trade!
4 comments:
where do you see AA and TIE going to?
do you not think that gold will keep going up?
i agree with the oil call...this level feels right...lower doesn't feel good and higher feels too high.
what do you think about mining stocks like HL and CDE?
I think gold is going to be pressured by the Investment banks at the Government's behest.
I know it's conspiratorial, but I'll be interested in it, if it comes in.
But not now.
Oil is too easily rigged by hedge funds. I just don't like it here.
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