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Toronto Stock Broker David Chapman
April 30, 2012

Technical Commentary: Markets, Bonds, & Gold Rise

This week…

  • The stock market was up on the week on improved earnings and stronger retail sales. The stocks appeared to ignore the problems in Europe. Words from Chairman Bernanke to “do more” if the US economy falters was also music to equities ears. In regaining 1,400 the S&P 500 was suggesting that new highs are possible. It is an election year and election years tend to be up years.
  • US bonds were also up on the week with the problems in Europe (Spain downgrade, recession in Britain, 24.4% unemployment in Spain, possible Socialist President in France). Chairman Bernanke’s “do more” also helped bonds.
  • Gold prices rose on the week as reports were out that central banks were strong buyers in March. As with stocks and bonds Chairman Bernanke’s “do more” helped spur gold prices higher. The gold stocks were also up on the week. Gold is up above $1,650 and above $1,670 gold looks better again for a run above $1,700. The commercial COT improved again. The US$ was weaker and breaks down under 78.
  • Oil prices rose on the stronger earnings. Fed stimulus and a lower US dollar also helped oil prices. Oil prices seemed to ignore the problems in Europe and higher production from OPEC. Oil prices may be poised to break above $105.


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