Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Wednesday, May 10, 2006

New Highs Everywhere?

Investors sit patiently or anxiously in some cases ahead of the Federal Reserve’s next move on interest rates, to be announced today. The DOW is within striking distance of its all-time high of 11,722.98, reached on January 14, 2000. Crude oil is sitting slightly above $70 (near major support – also known as the prior resistance line). Gold is trading slightly above $700 an ounce, its highest level since 1980. With the stock market, crude oil, gold (and other commodities) all trading at or near highs, we know one of these areas must bust or give way to the others. I don’t have a crystal ball so I can’t tell you which area will fall first or the hardest but I have plans to protect my capital against any major decline or collapse. Take a look at the 10-year chart of the DOW and see how close we are to making a new all-time high. I am waiting for the Fed announcement later in the day to see how I will continue to play positions going forward.





Piranha

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home