Blowoff Top in $XAU Muddies the Picture... I have published that my belief is that the market is going to follow the commodities. Now today, we're getting new highs in $XAU and oil is at the highs on the year as well. I follow the $XAU for simplicity. Ordinarily... as has been the case since this long rally began, the broader market has followed these commodities higher and higher. I can make a case now for divergence fundamentally, but technically I have to ignore that until the technicals confirm it. I'm watching now, because at the very top we could have a big spike in commodities that kills the equity market. The movement into bonds is confirmation of weakness in stocks...
I'm holding off on any new trades until this is settled. Do Not Forget this is Opex week.
Edited by SemiBizz, 18 July 2007 - 10:40 AM.