Friday, February 8, 2008

Markets end the week quietly

Well not much action on American markets today as the major indices sank on the open and stayed in the red through the day, ending down 0.5%. The end of the day rally I forecast was fairly tepid but at least pulled the markets off their mid-day lows. The Dow finished at 12,182 and the S&P at 1331.

This is basically in line with my weekly forecast which called for a down week which it was -- major indices were down about 4%. On Sunday, I had forecast the Dow ending the week at 12,200-12,400 and the S&P at 1320-1340.

Tokyo followed the NY lead and went lower, against my prediction for gently higher prices. That one counts as an out and out miss.

My call on the bearish direction of the Euro was essentially correct although it sold off more sharply than I expected. It ended up at $1.45

On gold, I was overly bearish but at least got the intraweek trends right as the Friday rally pushed it back to $922. The fact that gold can still shake off some bad transits and end the week higher than it started is a sign we're still in a bull market for gold. The only question is: for how much longer?