This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Quick Take: Is a Rally Warranted?

NEW YORK ( TheStreet) -- During the holiday-shortened week, equities are rallying thanks to no military intervention in Syria. However, Alan Knuckman, chief market strategist for Trading Advantage,told TheStreet's Jill Malandrino what could happen if that changes.

While equity markets are sensitive to Syrian action, gold and oil are much more contingent on global events, particularly in the Middle East, he said. Crude has been stuck in a multi-year range, between $80 to $115 per barrel. Knuckman said that a breakout over $115 could signal a further move up to $140 per barrel.

While oil did have a key reversal lower from the $112 level, it still closed higher for the week, which is a bullish sign, he added.

As for gold, Knuckman pointed out that a strengthening U.S. dollar could put a near-term cap on the yellow metal, which is still down 17% this year. As the dollar continues higher, along with escalating global tensions, the yellow metal may find support near $1,350, its previous breakout level.

But gold may not be the best way to play a rise in precious metals. Instead, Knuckman concluded that the Market Vectors Gold Miners ETF (GDX) could fare better, because it was hit so much harder in the second quarter.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GDX $19.36 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs