Radio Rallies & Reversals
Markets started off in the red today despite a number of Q3 earnings beats from some S&P500 and DOW heavyweights. Of note is gold, which is off roughly $30 on US$ dollar strength following what could be a sign of tighter monetary policy in China. Is the October correction in gold finally here?
Scotia Mocatta feels the Chinese news is a catalyst for profit taking and a major retrenchment, but that the trend higher will continue. Technical levels to watch for are 1345 which we're currently below, 1325, 1303, 1271 (which would be a 50% retrenchment from the move which started in July), and then 1245 which is the 100 day MA.
The other news today of course is the Bank of Canada's announcement to hold the overnight rate at 1%. I'll have more commentary tomorrow once I've had a chance to analyze the statement.
GB
Scotia Mocatta feels the Chinese news is a catalyst for profit taking and a major retrenchment, but that the trend higher will continue. Technical levels to watch for are 1345 which we're currently below, 1325, 1303, 1271 (which would be a 50% retrenchment from the move which started in July), and then 1245 which is the 100 day MA.
The other news today of course is the Bank of Canada's announcement to hold the overnight rate at 1%. I'll have more commentary tomorrow once I've had a chance to analyze the statement.
GB
posted by Gordon Bell at
10:03 AM
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