As I suggested two-weeks ago ~link~ wait for a pullback in Pride Int'l (PDE) before stepping in, well that BUY ZONE is here. The $30 to $31 zone looks attractive, start accumulating. Latest report from Barron's ~link~
Gold looks like it is also set to pullback, my near term target is $1075. ~chart~
As for the sell-off over Dubai, news over the weekend that the UAE central banks will stand behind lenders is reassuring to global markets ~story~. After all, its not the amount of money...BUT the fear of what could escalate that spooked markets again. Where there's smoke...there's fire!
The US Dollar continues to be the market barometer, it saw a flight to safety on the Dubai news Thursday/Friday. Dollar daily chart
On the Gold:Oil Ratio chart, it has been range bound since May and currently at the high end of 15.5. ~chart~
The coming week presents some important economic events. There are four ISM reports with the national manufacturing index on Tuesday. The Fed Beige Book is on Wednesday with another economic view of the various Fed regions. Then the big one on Friday; with the Non-Farm Payroll report for November.
My gut feeling is with traders returning from holiday, the Dubai news overhang and upcoming economic news, volatility will pickup...the market has been to complacent. Use any pullbacks this week to load up on a Santa Claus rally.
*click on chart to expand image
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