Market Lab Report - Premarket Pulse 7/20/15
Gold hit new multi-year lows even though China's supply of gold came in lower than expected. That said, China is vying to get the IMF to include its currency as a reserve currency as it challenges the hegemony of the US dollar, so that could have far reaching implications. With all the cross current in play regarding the price of gold, it is best as always not to try to out think the markets, and focus on the technicals. Commodities in general are also heading lower once again as they approach multi-year lows. The global economy's woes especially in China imply slackening demand for commodites, thus the lower prices.
As we have had a number of strong, actionable names over the past week as the market bounced higher, do as we have advised all year by taking profits when you have them in context with the overall chart, and keep stops tight. In this market, stocks take the elevator up and the trap door down.
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