What a lousy week for the North American Markets! It started well in the USA but went nowhere until the end of the week. If you had a week off, you did not miss a lot. Actually, when we have national holidays on the two sides of the border we are better to do so.
The stock markets closed higher than the previous week and should do well over the next couple of weeks. Dow is poised to break its all time high but wont go too far away. The coming week should give us a clue on whether it will reach 14000 before retreating or will keep the attack on the level for the fall action. NASDAQ is reaching its limits for now. The S&P TSX composite is boosted by the resources. Next target for it is 14550. This target is 7000 for FTSE 100 and 21000 for Nikkei 225.
Good run for the currencies! As previously mentioned, the Canadian dollar is the leader. Next week Bank of Canada is expected to increase its rate by .25 which in turn helped it to reach a 30yr high this week. It is well poised to achieve parity with the US$ and to go much, much higher. It could easily add additional 7-8 cents for a target of US$1.03 this summer. The British pound is targeting 2.03 and the Euro is going for 1.43. The Pound is completing a 15 years reverse head and shoulders pattern which is an extremely bullish outlook for the next decade.
The Resources are my favorite sector. Lots of money has been made there since 2001 and many opportunities will be available in the next decade as well. Presently, gold is still trying to find its way up. An important point to watch is 671.5 (August contract). A break trough it will lead us to a substantial run for the metal. Silver is trying to advance too. It has been a precursor of golds behavior in the past and its moves recently are very encouraging. Next week a 13.70 break (September contract) can signal a run up but it stays a low probability. We should eventually wait for another more week or so before getting a more clear reading of the move. Crude oil is doing great and is continuing to make its way up but I am expecting it to make a rest next week and not to advance too much.
Good investing and best regards,
Stefan Penkov
www.investinghelptoday.com
Disclaimer: Stefan Penkov is not a registered investment advisor. The opinions and statements made in the above publication are the result of extensive research and are believed to be accurate and from reliable sources. The contents are my current opinion only, further more conditions may cause my opinions to change without notice. The insights herein published are made solely for international and educational purposes. The contents in this publication are not to be construed as solicitation or recommendation to be used for formulation of investment decisions in any type of market whatsoever. WARNING share market investment or speculation is a high risk activity. Investors enter such activity at their own risk and must conduct their own due diligence to research and verify all aspects of any investment decision, if necessary seeking competent professional assistance.