Tuesday, February 19, 2008

Oil and Gold rise

Oil closed over $100 today for the first time. This exceeded my expectations in terms of price and timing but at least I got the direction right. Look for prices to continue to climb into the weekend. We could see $105 or even $110.

The NYSE rally couldn't hold today, despite being up for much of the day. I am looking for a more reliable rally tomorrow.

Similarly, gold had a big day as it closed up $24 finishing in NY at $928. I was too conservative and late in my prediction for a rally. The rest of the week looks strong, possibly going as high as $940-$950. Friday will see a decline.

We correctly called the decline in the BSE SENSEX Tuesday afternoon as the gains in the a.m. were lost. We've also been spot on in regards to the tentativeness of the market so far this week which has been essentially flat at both closes. We're sticking to our call for some significant rallies for the rest of the week.

And as predicted, Monday was tough for the Euro, as it touched 1.462 intraday. Tuesday it did come back very strong, finishing at 1.473. The US dollar is sitting at 0.678 now. The Euro almost certainly rise the rest of the week. 1.48 is probable, and even 1.49 is possible.