Equities, Dollar, Oil And Gold Under pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Markets are under pressure -- the equities, dollar, oil and gold are all struggling at these lofty levels. Equities are as overbought as they have been in history, based on the RSI. On a weekly and monthly basis, the RSI has never been higher. This is the first market I can remember which only goes up and hasnâ€™t had two-way trade. Even the famous bubbles of the 1990s and 2008 went up and down.
Gold and other commodities have not benefited from the weakest dollar in years, leading us to the conclusion that the dollar is near a bottom and gold and oil near tops. Thatâ€™s not to say gold and oil canâ€™t rally a bit in the next day or two; however, we are on the sell side of both and look at the risk-reward model, which indicates more money can be made to the short side.
Until further notice, rallies in equities, gold and oil should be sold. Gold is not a buy until it can breakout over $1,365 and hold. The big rally that started on Dec. 12 has run its course. Commercials are carrying record short positions, which indicates pressure will remain on the metals. Donâ€™t look now but all signs point to a reversal across the board