Last week I mentioned that the markets were driving to new highs but the quality of opportunities was not as good as we’d like. At the same time Gold and Silver had broken out from their ranges, and were consolidating. Also, several important stocks were exhibiting bearish head and shoulders patterns. Overall the market was still bullish and likely to drive to new highs, but this outlook was to be tempered by the likelihood that some big money was betting on a retracement in the markets
Staying true to our philosophy, I also mentoned you have to trade what you see, stick to the best looking opportunities if and when they present themselves. We typically do get warning if something major is going to happen.
I’ve repeated all that because it’s sound commentary, particularly in the light of the political uncertainty in Ukraine and the Crimea – and the impact on the global economy that may have. Right now there are wobbles, which hopefully the international community can contain. But if the markets want to take a breather and retrace, they would use this as the excuse. Right now they’re hanging on, and we’ll have to see how Mr Putin plays what is a very strong hand.
