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STOCK MARKET – IT’S TIME TO PAY ATTENTION
- By Terry J. Atzen
- •
- 18 May, 2016
Once again, stocks are at a critical level and investors need to be aware of where the stock market is and pay attention to their stock portfolios.
As you can see from the chart below of the S&P 500 Index, stocks made an amazing recovery from the 1820 level (twice this year) and ultimately reached the previous high made last year (at 2110).
Currently, the chart below of shows that prices are once again at a critical level as buyers and sellers continue their daily trading.
The recent columns of Os (sellers dominating the market price) have been met with buyers (columns of Xs) at the level we see the price today – 2040.
If sellers remain dominant in the marketplace and take the price below 2040, the next support level is all the way down to 1970.
So, today’s level is one of which investors need to aware.
I am not making a prediction as it remains possible that buyers could return to the marketplace and take prices at, or above, the high at 2010 made both last year and again in 2016.
Finally, I wish to point out is that we are all inundated by the media with a lot of “noise” that is, in my opinion, irrelevant.
Remember, the only factor that determines the price of anything is the Law of Supply and Demand. It is the moment-by-moment decisions made by buyers and sellers that determines prices and not who may or not be the next president of the United States.
For more details, I invite you to my website: www.theinvestmentcompass.com
Weighing-In on Gold and Silver……..What’s the Real Truth
In the past few weeks, I have been amazed by the extreme range of predictions on the price of Gold and Silver (Harry Dent [ www.economyandmarkets.com ] says $750 and Jim Rickards [ www.silverdoctors.com/Jim-Rickards ] says $10,000), so I decided to weigh-in on the subject (without the predictions!).
Let me say first, that this is a great example of why I wrote my book and why I do the work that I do.
Pundits can, and do oftentimes confuse investors. This creates doubt and causes investors to ask, “Who do I believe? Who is correct? “What is the Truth?”, and as the result, end up doing nothing when their personal instincts say otherwise.
My work is about “What Is” – logical, simple and easy to understand.
As usual, my analysis begins with an index, in this case, the Index for each of the metals, then the respective ETFs as well as the Inverse ETFs for verification.
And, at the end of this blog, I will take a look at the Gold/Silver ratio that many folks like to monitor.
First, the Gold Index:
Update on Gold
Gold has been a “hot” topic in the media so I decided to check-in on the subject – showing you what is really happening.
First of all, the Gold Index: (If you click on each chart it will make them larger)