This Day On The Street
Continue to site
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

February Forecast for Trading Equities, Gold and Bonds

NEW YORK ( -- While trend lines are a great tool for identifying a weakening movement and reversals in the market, I don't put a lot of my analysis weighting on them.

Most of my timing and trading is based around what I call inner-market analysis (market stages, cycles, momentum and sentiment). Using these data, we can diagnose the overall health of the market. Knowing the strength of the market, we can then forecast short-term trend reversals with a high degree of accuracy.

In this report, I keep things clean and simple by using just trend lines. During the last three weeks, we have seen the price of stocks pull back. And because 2013 was such a strong year for stocks, most participants are expecting a sharp market correction to take place anytime now.

So with the recent price correction, fear is starting to enter the market, and money is rotating out of stocks and into the risk-off assets like gold and bonds.

Must Read: Saturday, February 1: Today in Gold and Silver

Stocks tend to fall in times of economic uncertainty or fear. These same factors push investors toward the safety trades, or risk-off: high-quality bonds and precious metals. As more money goes from risk-on to risk-off, stocks will continue to fall and the safety trades will rise. The move by investors to select the safety of gold and bonds, compared with the volatility of stocks, will result in these risk plays moving in opposite directions.

Let's take a look at the chart below for a visual of what seems to be unfolding.

Gold Trading Newsletter

1 of 2

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs