NEW YORK (TheStreet) -- August has been a rough month for equities, but they're starting Monday with some gains. Gold has also been rallying since July, but has recently started to take a breather.
Mark Newton, chief technical analyst at Greywolf Execution Partners, told
Debra Borchardt that gold typically performs from July to October, during India's wedding season.
He added that stocks, while bouncing, still look a little shaky and that gold might be a better alternative. He went on to say that we're in the seasonally weak period for stocks and the seasonally strong period for gold.
With the yellow metal making a breakout last Friday, Newton has a price target of $1,525 an ounce, the support level which gold fell through in April.
Yields on the 10-year Treasury are dropping as well. The move could be attributed to weaker-than-expected durable goods orders, which might have some investors thinking the tapering date will be pushed back from September.
Newton said that tapering is already somewhat baked into the market, and that bond yields rose towards 3% very rapidly. Now, though, they're just pulling back and cooling down, he concluded.
-- 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.