By Richard Russell
Last week closed on a bullish note, with the Dow finally climbing above important resistance at 18,000. The law of big numbers applies now. The longer the Dow remains steadfastly above 18,000, the better the odds that the Dow will move higher with the intention of making contact with 19,000.
Japan is deflating, China is suffering a minor slump and the EU is fighting deflation. The battle for the cheapest currency continues, and the result is higher equity prices in terms of the cheaper currencies.
As for gold, the background is so mixed and complex that I have decided to simply follow the price action. As long as gold holds above 1200 I will consider the price action bullish. My preferred action in gold is to hold the physical metal. The bearishness towards gold can be seen in the action of CEF, which is now trading at a discount from ... Log in or subscribe to continue reading.