Weekly Markets Thoughts - July 29, 2007

This is what I name a rock-and-roll week! Anybody scared? You should not! After a good progress of the broader marketplaces these pull-backs are more than than normal. The hebdomad before, I suggested to take some net income and to bury about the marketplaces until the end of the summer. If you did lose this suggestion, make not acquire nervous as nil major is expected soon. As I already have got said, the marketplaces are entering a time period of a crabwise move which could endure for a couple of months. The recent lessenings are a spot too deep for such as a short time period and we are probably going to witnesser some kind of a bounciness back action next week. Bash not acquire very excited about this either as it will travel nowhere! It would only be a normal accommodation after the autumn down.

On the currencies side, we saw a record low pressure for the $US on July 24th and a bounciness back correct after. It is not easy to interrupt a historical support. The dollar is owed for some remainder and is not going to fall sharply as many analysts suggest. All the currencies had a good tally recently and we can anticipate that the net income taking action will halt them for sometime before the race continues. This in bend will assist the United States dollar for now (but not for long!).

The recent diminution of the long term involvement rates is giving some alleviation for the chemical bonds as well. However, we should not bury that the major tendency is on the up side and this is only a impermanent benefit for the bonds.

The stock marketplaces are under pressure level after reaching new highs for some of them. Dow still have a room to travel down to its good support of 12750 but is improbable to traverse the 12850 mark. The S&P 500, NASDAQ, the TSX Complex and the FTSE 100 indexes are already at their supports and a recoil action is very possible. These several supports are 1450, 2525, 13710 and 6170.

Crude oil is continuing to outperform its pears from the resources sector. It is now approaching its all clip high of $80.64 and have enough steam to attain it and accomplish a new record. However, I believe this is not going to go on now but rather later this summertime or early in the fall. The cherished metallic elements are coming back from their recent tallies and are still in a procedure of confirming the beginning of the long awaited new intermediate moving ridge up. Gold and Ag should not travel bawl $655 and $12.60 respectively. The up side will be confirmed by breaching $685 for Gold and $13.30 for Silver.

We are approaching exciting minutes but for the adjacent calendar month or so the marketplaces will give us the chance to take advantage of our summer. Keep your energy for the autumn action!

Good investment and best regards,