Nvidia Saves the Day, but market still uneasy
Following a scary drop in share price early in the week, Nvidia has bounced back claiming a 16% gain. This gain is one for the record books, adding a staggering $277 Billion to their market cap in just 1 day.
With investors cheering from the sidelines, economists are treading carefully – clearly stating that ‘late market gains are possible but don’t chase FOMO’.
Sentiment is up in the US leading economic indicators for the first time in many quarters. Jobless claims have reported well, reducing from 216,000 to 201,000 and home sales are strong for the month.
So the FED rhetoric around a soft landing for the economy is sounding reasonable once again. So why are economists recommending to tread lightly?
For those with a little age behind them, memories of the dot com bubble are still fresh. On March 10 2000, sharemarkets peaked through the introduction and disbursement of new technology – namely the World Wide Web. Two years later, in October 2002, markets collapsed falling as much as 78% in some sectors.
Gold during this period expanded by 12% (2000 – 2002), while markets reeled in horror. History doesn’t repeat itself completely but it sure does create echoes that can still be heard today.
Enjoy today’s forecast and next week we’ll talk about today’s CPI print from the US.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Neutral |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
*Not financial advice, please DYOR prior to any investment decisions you make.
