By: Stefan Penkov
Another week to forget… We had a strong start on Monday and a meltdown of these gains trough the remaining 4 sessions. By Friday, the week ended where it did start and even a bit lower for most of the stock markets. This is just the beginning of several weeks with a strong volatility. The markets need to find a solid ground before launching another attack on their historical peaks.
Nothing has changed on the side of the stock market indexes. Most of them are still on their support levels. These support levels for the S&P 500, NASDAQ, the TSX Composite and the FTSE 100 are 1450, 2525, 13710 and 6170 respectively.
The commodities are the best part of the investment options these days. The summer doesn’t usually show excellent runs (with a few exceptions) but we are still witnessing a solid performance from Crude Oil and more and more obvious preparation of an imminent precious metals run. Gold and silver are sitting around their respective break through points. It is not yet the time to heavily invest in them but you should definitely start intensively studying the eventual options as the intermediate run can start any moment now. For those of you who are not familiar with the individual stocks good alternatives are the mutual funds, the ETFs and the gold & silver certificates. Ask your financial advisor to provide you with this information!
The currencies are still in a consolidation move. A day up and then a day down… It becomes boring to watch them. The US dollar is trying to resist its fall down but the rest is temporary. Soon we are going to witness a further down move. Best currencies to stick with remain the resource currencies – the Canadian dollar, the Australian dollar and the
Best regards and good investing,
