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>>>WeeklyMarket Commentary
March 14, 2003
By Pam and Mary Anne Aden
VOLATILE TIMES
It's been a wild week and the markets continue to be dominated by war news. The Dow Transportations hit a new bear market low, along with England, Japan, Germany, the dollar index, T-Bills and the 10 and 30 year yields while gold shares fell to three month lows preceding yesterday's almost $11 decline in gold. Meanwhile, the Euro, Swiss franc, platinum and oil all hit new bull market highs.
The sharp fall in gold and gold shares means a full sized D decline is underway and gold will likely stay volatile. Remember, D declines tend to be the sharpest decline in the intermediate cycle. But as long as gold stays above $317, the major trend will remain up. For now, gold is under pressure below $350, but if it stays between $350-$330 during this decline, it will be strong in the bull market and in a great buying area.
As for stocks, the bear market is strong but yesterday's surge means we could see some short-term upward volatile swings before the bear resumes its course. The Dow Industrials remains very weak below 7900 but if it closes above 7900, it could rise to the 8300-8500 level, but it would still be weak.
In the short-term, much of the action in all of the markets is going to depend on how the war issue plays out.<<< |
