Home > Uncategorized > ROHR: Brief Update 2009/11/25: Upbeat Economic Data Perversely Assists Bonds More Than Equities While US Dollar Slips into the Gold Rally

ROHR: Brief Update 2009/11/25: Upbeat Economic Data Perversely Assists Bonds More Than Equities While US Dollar Slips into the Gold Rally

▪  That flies in the face of historic tendencies (albeit we’ve seen that a lot lately), and received wisdom on assured economic recovery and pending inflation.  While economic data continues to remain somewhat on the positive side, the proof does not seem to be there in the equity market pudding, with DJIA still stalling at no better than the 10,500 Tolerance of major 10,300-350 resistance, and December S&P 500 future also finding continued resistance not much higher than the top of the 1,102-08 major downside Gap from last October’s failure. Those are both areas above which the markets must finish the week in order to signal any chance of extending their already substantial rally.  All of which still has that much more import in light of other asset class decisions, as December T-note surmounts its 119-16/120-00 resistance, with next potential targets in the 121-16 area. While there are many instances of a mutual rally in these two asset classes in the early phase of a recovery, the extent of the equities recovery and sentiment by the bulls that it has much farther to go still makes the current situation somewhat of an anomaly. Also note US Dollar Index below previous support in the .7500 area is only down to the .7450-30 area critical Tolerance factor that we have been noting, and December Gold future is not significantly decisive at this time into the 1,180-1,200 range, the higher end of which is not just psychological…

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