January 5, 2020
Weekly Market Outlook
By Keith Schneider
The retracement was in response to news of President Trump ordering the killing of the Iranian military leader, Qassem Soleimani who was in Baghdad planning new attacks on American interests.
Mr. Soleimani is considered a national hero in Iran, and a terrorist by the U.S. and its allies.
As a result, the threat of a greater regional conflict looms greater than ever.
So, as we sit virtually at new highs in U.S. equities, the threat of war looms. This has impacted both gold and oil.
Is this the new normal for the new decade?
One thing I learned from the trading pits of the NY commodity exchanges during one of the most volatile periods in recent history (the 1970’s that included the Hunts silver corner, inflation, oil shocks, and the U.S. Iranian Embassy hostage crises) is that you can tell the tone of a market by how it reacts to news, not the news itself.
At this point, it appears unclear as gold responded strongly, but equities closed down modestly. Hence the jury is out to lunch and undecided.
Fortunately, it’s January which is one of the easiest times of the year to anticipate the beginning of significant move in the market if you use our January Trend Trade tactic.
We covered these tactics in last week’s January Trend Trade training.
This week’s highlights are:
Click below to get this week’s video:
Best wishes for your trading,