After last year’s huge stock market correction, it’s understandable if you’re still apprehensive about trading or investing. Since then, the markets have rebounded in the biggest 10-month rally since 1937. So if you still doubt the bull market then you’ve missed out on all the action. In less than 2 months, the price of gold rose $ 90 and has revisited $ 1,010 for only the second time ever. On Friday, the price of platinum finally broke the $ 1,300 resistance level, up considerably from a low near $800 last year. Silver has performed the best, having advanced over 25% since July.
Our preferred gold stock, RBY hit an all-time high of $ 4.00 last week, up well over 400% since our fall buy alert. If this isn’t a bull market, then I don’t know what is.
It’s not just precious metals either. The DJIA recently broke through the 9500 resistance level, the S&P is firmly above 1000 points, and those troubled bank stocks that were worth pennies per share last fall have rebounded by triple-digit percentages.
So everything’s trading above 50-day moving averages, which traders and investors generally regard as the best time to hold. Nevertheless, many think that we’re running out of gas and that just isn’t so. Surely short-term corrections are expected, but there’s still a lot of upwards momentum left.
We can say this with confidence because at the height of the markets in 2008 (before the correction), the price of oil was beyond $ 140. Now it’s only half that price (see charts below).
So really, this leg of the bull market has only begun and should run well into 2010. Even in bull markets there are better times to buy than others, so use your best judgment.
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