Monday, October 26, 2009
The market took a hit today, especially the commodity & financial sectors. Needless to say the Itz Pix portfolio did not avoid the crush downward.
What's to blame??? The rally in the dollar or the decline in the Euro ($XEU). Is this a long term reversal or a pause that refreshes? I say the later, after all gold, oil, copper and silver have had a nice run over the last several weeks. I still believe that the dollar will continue lower as our government spends like a teenager with their parents credit card!
As for Gold, in the chart below I'm using the GLD ETF, could see the $100 level ($1000 for $GOLD) tested. USE THE PULLBACK TO BUY! I still see the Euro rising to the 160 level and the US Dollar ($USD) to the 72 level. Gold should reach about $1300, my target in 2010.
Oil ran close to my $83 target on the breakout, I posted a few weeks ago. Now I still believe oil ($WTIC) can still run up to the $95 level, but expect a retracement near term to the $74 level. Again use this to buy or add to positions.
*click on charts to expand images