Gold and Oil up...

Both gold and oil price went up last night.  But what does it mean?

Yesterday, the ASX went up by over 0.8% but my stocks went down by more than 0.8%.  And this AM, the market in NY went down but with gold and oil up, I am hopeful of some recovery.  Most people have gone crazy and are parking a lot of money into banks....

Illogical markets

Today, the ASX is up but other than the US market going up at the end, very slightly, it is difficult to comprehend.  The ECB is printing money but why would other markets head up?

And price of gold is up overnight but again, is it totally because of bad news?  What is the really bad news?

I topped up 2 resource stocks but it is hard to be sure whether it is throw good money after bad.  PEN will start to produce uranium ?soon and AMI is producing gold and copper.  Commodity prices are rotting at the moment except for gold...  Nickel was up but it was because of Indonesian government 'manipulation'.

Mostly, I have been sitting on the side... because I can't work out the logic.

Commodities

Recently, in times of trouble, price of gold FELL.  But in more recent times of trouble, price of gold went up.  I leave the logic to illogical traders.

And Beijing is trying to cut down pollution, yet NSW coal exports to China went up by 22% last year.

This AM, RIO had record shipment of Fe ore in the midst of record low price for the commodity within the last five years.

Price of oil has fallen to the point where even major producers like Russia and Venezuela are filling the pinch.  Very few producers can sustain very low oil price.  What has been found may be cheap to extract but it is very expensive to explore and even more expensive to develop the fields.  Some time in the future, the price of oil has to rise.  In the meantime, success with exploration has not been met with any zeal from investors...  Just look at KAR!  And TPT's recent optimistic announcement about its tenement in Alaska.  In the past, those good news would have sent the share price soaring over the moon.

Stock Markets

I have no idea how to interpret the stock markets at the moment.

People had been dumping gold when there is turmoil and now gold price is rising because of turmoil.

Energy cost has fallen significantly yet most other sectors have fallen too.  In the past, when price of oil has risen, the stock markets have fallen.

ECB is going to do its own QE yet the Euro is still not falling.




Only sure thing that I can logically understand is why the AUD is falling... and should be falling.  The main four banks in Australia are still the main four banks but because so much money have been channeled into banking stocks, the price is overvalued at the moment.  I rarely sell bank shares and I ride its up and down.  I still buy bank shares but not at the moment.