We are getting close to approaching a decline in the 200-day moving average, which I suspect is going to stop this rally. Even though the stock market is back in a cyclical bull market and making higher highs, the banking index is not. It's making lower lows. You cannot have a healthy bull market in stocks if the financials are not participating, and they are not. The contagion is hitting the regional banks first and it's going to spread. The Fed is going to panic again and print more money. And that will give the stock market a bounce. I think it will be very bullish for the commodity sector in general and specifically for the precious metals sector.
Gary Savage is a 57-year-old retired entrepreneur living in Las Vegas. He has been investing in stocks and commodities for 15+ years. He is a self-made multi-millionaire and attributes his financial success to savvy investments made in owning/selling several businesses, real estate, and, more recently, the stock market. He is also an Olympic weightlifting champion, and world record holder. Gary’s stock market investment philosophy and success owes to an unusually disciplined and keen understanding of market cycles combined with cutting edge sentiment data which allows him to anticipate and articulate how larger trends are likely to unfold. His analysis is almost always in strong contrast to what the public is thinking – and, provocatively, several steps ahead of the crowd. Gary’s renown as a recognized trading/investment expert in the areas of precious metals, stock market, oil and currency markets is demonstrated by his numerous internationally published articles in these market areas. Gary publishes the Smart Money Tracker, a market newsletter available online by subscription only, and also the SMT free blog.
