American markets rallied again today as the Dow finished up 114 pts to 12,684 and the S$P added 9 to 1381. I had thought sentiment would turn negative today so our outlook missed the mark. Tomorrow will probably start strong but it may finish under water. I am not taking a firm stand either way, however.
Tokyo finished lower by 90 points to close at 13,824 as Monday's rally didn't hold while the BSE found some momentum and managed to add 156 to 17,806. These markets are vulnerable to declines Wednesday.
The big news of the day was the all-time low for the greenback at 0.6677 and the Euro hitting 1.50 for the first time. This is in keeping with our bullish forecast for the Euro. I expect it to go higher the rest of the week and linger at or above 1.50, although some retracements are likely.
Oil hit $100.88, also a new all-time high and is higher in Asia in Wednesday morning trading. It will probably move decisively towards $102.
Gold rallied as predicted hitting $948 in New York trading and is now moving towards $955 overseas. I think one more up day is possible (but not bankable), after which expect some serious consolidation, perhaps down below $930.
