January 29, 2012
Weekly Market Outlook
By Keith Schneider
This week kicked off the Chinese New Year; the Year of the Dragon. The Dragon is revered and considered the most important, lucky and prosperous of all signs in the Chinese zodiac.
Dragon fire fueled by cheap natural gas could be a thing of the past. Natural Gas, while at near record lows, might have hit bottom catalyzed by large cutbacks in production from Chesapeake Energy (CHR) that produces 9% of Natural Gas in the US.
Furthermore, if the first few weeks of this year are a harbinger of the not-so-distant future, perhaps we have found a new market indicator as the NASDQ 100 sits at the top of a decade long price channel, poised for an explosive move from these levels. However, on this leg up, the volume, sorely lacking, dropped to its lowest levels in quite a while. Selloffs have been short lived, keeping bears at bay as the NASDQ 100 also sits at overbought levels based on market internals. The very low volume suggests money managers are under weighted in stocks. They are simultaneously terrified about not having enough exposure, while worried that any exposure is too much.
The Fed announced that cheap money is here to stay rocketing gold towards a lunar colonization which should occur much sooner than Newt Gingrich’s second term as POTUS.
The price patterns setting up are quite interesting. Let’s go to the video.
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