The markets have been volatile, moving up and down on the news of the day. While the stock market trend remains bullish, it’s mixed. The Dow Industrials, for example, hit a new record high recently, but some of the other stock indexes are still looking toppy, note Mary Anne and Pamela Aden, editors of The Aden Forecast.
The main market mover has been the developments in Iran via the peace plan. But the new Federal Reserve Chair Kevin Warsh also affected the markets by leaving interest rates unchanged and signaling another rate hike may be coming in the months ahead. The 2-year Treasury yield hit a 16-month high on the news.
Overall, the market is the most expensive ever. But the Primary Trend Index (PTI) continues to be very strong and bullish. If you have stocks, keep them as long as the bull market lasts...but maintain caution. If you’re not in stocks, stay on the sidelines.
Meanwhile, gold is still in a downward correction within its bull market. But increasingly, it looks like the lows are near, especially if gold now stays above its 65-week moving average. It provides strong support at $4,050 an ounce.
