How Long Can The SP 500, Precious Metals, & Bonds Rally?

In the fine print of most investment advertisements or in the softly spoken disclaimer at the end of a commercial, we generally read or hear the phrase “past results are not indicative of future performance”. While those exact words may not be written or uttered, something along those lines is found on almost any piece of investment literature or in investment product commercials.

In the 2nd half of 2009 all the way through 2010 a variety of asset classes performed quite well.

Investors who purchased stocks, gold or silver, and bonds anytime in 2009 were handsomely rewarded in 2010 if they held their positions. How long will these assets continue to perform well? How long can gold pump out double digit returns before suffering a bad year? How high can stocks climb when uncertainty seemingly surrounds the marketplace? Price action is never wrong, but history reminds us that a particular asset class does not outperform all other asset classes consistently over long periods of time. Trees do not grow to the sky.

Since 2009 stocks, precious metals, and bonds have all had tremendous performance records. Most economists point to actions by the Federal Reserve as the primary reason because these interventions lowered interest rates to extremely low levels which caused investors to take more risk for better returns. High levels of liquidity paired with low interest rates moved nearly every asset class higher, with stocks and precious metals earning outstanding year over year returns.

With 2011 just starting, will stocks, bonds, and precious metals continue rallying? When looking at probabilities and statistics the odds are not favorable that all 3 asset classes will remain outstanding investments. In fact, it is possible and arguably likely that at least one of the asset classes if not more than one will face headwinds in 2011 and beyond. While Tuesday was only the second day of 2011, precious metals are under significant pressure and the fundamental picture for bonds and stocks is uncertain.

Let me show you just how overbought this market is. Read > How Long Can The SP 500, Precious Metals, & Bonds Rally?


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2010 Recap and Trading Look Ahead

No one can argue that 2010 was a fantastic year for traders. Yes there were some downs, with the economy and all, but trading wise it was outstanding!

I'm sure you've read an article or two that I've posted from Chris Vermeulen, but I have a little more unknown insight into his trading service and it's records...

This is his 2010 members only trading performance......its audited and 100% verified:

But there's something missing......

The last 5 closed trades and their results!
SPY 0.9%, Nov 12 - Nov 15
GLD 1.2%, Nov 4 - Nov 12
SPY 3.5%, Oct 27 - Nov 5
TBT 2.4%, Oct 21 - Nov 2
GLD (1.1%), Oct 19 - Oct 21

Second: He and his members currently have three open positions with the following gains.....

Open Position..........65%
Open Position..........28%,
Open Position............9%

Chris let me work a special set-up just for my members for 75% savings.....Just Click Here to check it out!


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New Video - What's Ahead for Crude Oil?

There's no question about it, 2010 has been pretty difficult for most traders in the crude oil market. This year has produced no discernible, lasting trends in this market. The trends it has produced have lasted little more than just 3 or 4 weeks at best.

So what's next for crude oil traders in 2010 and into 2011?

In today's short video we examine the fact that crude oil briefly traded over $90 a barrel before falling back. So what made the crude oil market reverse course and fall back? Was it selling, was it profit taking, a technical point, or something else? We are examining crude oil in detail using a tool that we think is very appropriate for this type of market at the moment.

We have not discussed this technical indicator in any of our previous videos and I think when you see how it works and how you can use it your own trading, you will be pretty impressed.

We still look at our "Trade Triangles" of course, but "Trade Triangles" tend to work best with markets that eventually get into big trends and that's really where you make your money.

If you have a few minutes and you'd like to learn about this new/old technical indicator that has generally been overlooked by many traders, you will find this video very interesting. This 30 year old indicator has proven to be very effective in this year's crude oil market so you don't want to miss this video.

As always our videos are free to watch and there are no registration requirements. Please take a moment to leave a comment and tell us what you think of the video and the direction of crude oil.

Watch "After a Tough 2010, What's Next for Crude Oil Traders?"


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