By Brendan Conway Of DOW JONES NEWSWIRES JUNE 8, 2011, 11:32 A.M. ET NEW YORK (Dow Jones)–U.S. stocks dropped slightly Wednesday morning as concerns over the outlook for the U.S. economy left the market in danger of a sixth straight loss. The Dow Jones Industrial Average fell 8 points, or 0.07%, to 12062 in late…
ADAM SARHAN, CHIEF EXECUTIVE OF SARHAN CAPITAL IN NEW YORK:
“What we’re seeing is a very strong and sustained bid for silver, an overwhelming desire for people to be involved in the silver trade. That strength begets more strength. It becomes a self-fulfilling prophesy as more and more people get involved.
“I’d say that it is premature to call it a bubble, but there’s a bubble-eqsue feel to the move. At this stage, you don’t want to fight the trend. How much higher could it go? No one knows, but there’s no overhead resistance.”
“All of these markets … aluminum, oil, copper … all had
big, big runs over the past few weeks. So what we are seeing is
just a sharp pullback,” said Adam Sarhan, chief executive of
Sarhan Capital.
The Reuters-Jefferies CRB index .CRB, a global
commodities benchmark, fell nearly 2 percent in its sharpest
one-day decline in a month.
“They all took the stairs up, but are now taking the
elevator down. The question is how far down will this elevator
ride go?” Sarhan said.
“It appears that gold is beginning a new up-trend after its recent consolidation,” said Adam Sarhan of Sarhan Capital. “If gold negates this breakout and falls back below $1,440 to $1,430, one would expect sideways action to continue.”
“I think at this point, the market deserves the bullish
benefit of the doubt,” said Adam Sarhan at New York-based
financial advisory Sarhan Capital.
“You have a nuclear threat in Japan, instability in
oil-producing countries, debt panic in Ireland and other
periphery countries in Europe, and yet the market doesn’t come
down.”
“Gold has been building up a large space to consolidate
recent gains from the latter half of 2010,” said Adam Sarhan,
CEO of New York-based Sarhan Capital.
“The market is acting like a coil. As more and more
pressure is building up, gold will most likely break out and
close above its current base at $1,450 an ounce,” he said.
Sarhan said higher prices would follow as long as gold held
above $1,400 an ounce and above the key 50-day and 200-day
moving averages.
“On the downside though, if the 50-day moving average is
broken, and you see gold start falling hard, then all bullish
bets are off,” he said.
Wed Mar 30, 2011 3:20pm EDT * Copper sinks as Chinese demand worries mount * Copper stocks in China, LME warehouses in the spotlight * U.S. copper runs into technical support at 100-day MA * Coming up; Chinese manufacturing data Friday (Recasts, updates with U.S. copper closing, adds graphic, analyst comments and NEW YORK dateline/byline)…
“If the data continues to implode the way it has been,
we’ll see new lows in the stocks. And if that happens, we’ll
have to expect a protracted downtrend in the market. When the
market gets better –it will happen– you’ll see it first in
housing stocks,” said Adam Sarhan, chief executive of Sarhan
Capital in New York.
Wed Mar 23, 2011 2:37pm GMT * U.S. home sales hit a record low in February * Fed tells Bank of America to rein in dividend plan * Portugal set to vote on austerity measures * Indexes down: Dow 0.4 pct, S&P 0.7 pct, Nasdaq 0.7 pct * For up-to-the-minute market news see [STXNEWS/US] (Updates…
“The reason why copper is not participating to the upside right now is there are too many unanswered questions,” said Adam Sarhan, chief executive of Sarhan Capital.
He cited the rise in crude oil prices and geopolitical tensions in the Middle East, monetary tightening measures in top-consumer China, and the uncertain outcome from Japan’s nuclear crisis as being the most troublesome issues facing the global recovery.
“Investors simply do not know if these events are going to derail the global economic recovery,” Sarhan said.