With no major news from last two days the Dow just managed to extent its hot streak to 8 days in a row with a late rally pushing it back into the black by just 0.02% at 14,450. MarketWatch says that this streak is the best run the Dow has had since February 2011 but there are some signs it might be tiring a little at the moment, at least technically. The S&P and Nasdaq couldn't quite drag themselves back into the black at days end closing 0.27% and 0.33% lower respectively.
In Europe the FTSE ignored the weight of some pretty poor UK data to rally 0.11%. It is clear that the British economy is in dire straits with industrial production falling 1.2% in January against an expectation of a 0.1% increase and the 1.1% last. The year on year contraction in IP fell to -2.9% when the punditry thought it would rise back to -1.1%. Manufacturing production was also weaker, much weaker than expected.
Gold's solid 0.90% or $14.20 rally to $1,592 oz overnight looks to be the start of a larger move back toward $1,619 at a minimum. Having spent some time, quite a bit really, consolidating in the $1,550/70's gold looks like it wants to run higher. Golds close this morning is the first time it has closed above our fast moving average since early February when the acute sell off kicked off. Ultimately a run to $1,665 can not be ruled out.
Following are trade for today,
- Buy gold at 1588 stop below 1580 target 1604
- Sell Crude Oil- Mar at 93.45 stop above 94.10 target 92.10
- Sell Nasdaq at 2804 stop above 2812 target 2795
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