NEW YORK (TheStreet) -- The stock market acted bullish on Tuesday, and the supposed reason was the hope that Ben Bernanke and the Federal Open Market Committee are going to make a big announcement.
After the FOMC concludes its meeting on Wednesday Bernanke is supposed to have a press conference, and maybe he might pop the cork on a surprise bottle of stimulus champagne.
Is that possible? Yes, especially in the light of the uncertainty and banking instability in Europe and in this country. Is it likely to happen Wednesday? My guess is no, not yet.
Why am I feeling like the saying of the day should be "ready, get set, not yet"? Blame my cynicism on the price of gold, which didn't participate in Tuesday's rally, and actually went down.
If the FOMC and Bernanke were all set to use their biggest options to stabilize the U.S. and European economic woes, I would think we'd see this reflected in the price of gold moving decisively higher. Take a look at this 12-month chart of the SPDR Gold Shares (GLD), an ETF that's geared to closely replicate the price of 1/10th of an ounce of gold per share. Gold closed Tuesday at approximately $1,619, down almost $8 an ounce from Friday's price. GLD closed at $157.16, down about a half of 1%.
So if you're a believer in the Elliot Wave Principle, you might be able to decipher the notion of a 4 wave pattern downward (from the August-September 2011 highs) that may have ended around May 16.
The theory suggests to its adherents to look for a 5 wave that the majority of time brings a climactic ascent to new highs. If that happens for gold it could come before 2012 closes. The gold-mining stocks as represented by the Market Vectors Gold Miners ETF (GDX) are still well below both their 100-day and 200-day moving averages, as seen in this chart.
GDX, including such behemoths as Barrick Gold (ABX)
(ABX), Newmont Mining (NEM)
and Goldcorp (GG) representing nearly 44% of the fund's total assets, isn't signaling euphoria yet.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
