Software & Finance

Stock Market - Update US Treasuries (TLT) and Commodity Bubble (SLV, GLD)

Jan 07, 2011, As of today Dow Jones Index (DJIA) closed at 11675.76. With many analysts and main stream media projecting stock market bull view into 2011 as bond yield sours in the recent weeks, it is a very good time to long US treasuries. TLT set intra day low today at 91.03 provides an excellent buying oppotunities for US treasuries. TLT closed today at 92.35.

Gold and Silver prices started going down in trading during the first week of 2011. Both Gold and Silver prices are currently highly overvalued. A deep correction on commodities would happen as Dollar Index has already started its bull run. US Dollar Index (DX/Y) closed today at 81.13. Its 52 week low is at 75.63 and 52 weeks high is at 88.71. As dollar is significantly very strong, any higher move in the gold and silver prices would be phony. Gold Futures closed today at 1368.90. We can expect to see a panic selling in Gold along with stock market correction which would make gold to plunge below 1000 in the coming months.

Regarding Gold Prices, please read my earlier article Right time to buy Gold

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Posted on Jan 07, 2011