2053 Has To Hold!
With the strong unemployment number stocks got whacked today with the fear that the federal reserve will raise interest rates. The 30 year bond futures closed sharply, lowering down over 3 points is a huge down move, sending rates higher. So the bond traders see rates going higher!
Gold was down over $30. When interest rates go higher gold goes down! Just the fear of higher rates sent bonds yields soaring and gold crashing! I do not believe that the federal reserve will raise rates this year and if they do it will be a quarter of a point towards the HD of the year, just enough to save face. With that said the markets now are way oversold and should have another push up. As long as the s&ps hold the 2053 number on the daily charts the markets are still in an uptrend. I stated that if I was a long term investor I would look to lighten up on equities. If I was an intermediate trader I would look to buy QQQ, SBUX using a 2053 stop. Oil was down 1 today and my stochastic share rolling over on the daily charts, if oil breaks the 46.80 level then I see oil making new lows. Gold now must bounce to work off the oversold condition looking at NUGT and others to short on the daily charts.