Market commentary for the week 24 2010

The stock markets of the industrialized nations had the best two week stretch in a year, and despite continuous negative economic news stocks stick to the ceiling. Why? Easy answer - money managers and hedge funds have not made any money, and the end of Q2 approaches, so they all buy up the market to make things look good. No wonder retail investors are doen with this market. It is rigged. It is noteworthy, that the apparent driver of the world economy is not participating, the Shanghai stock exchange closed on another 52 week low.

The EURO has stabilized, and given that the Europeans are actually implementing their austerity measures, Eruope might soon come out way ahead of the US. Neither the US government nor the Fed has even acknowledged the grave debt issues the country, individual states and cities face.

Gold hit a new fresh high. Gold bears that shorted on the last dip in hopes for a double top are no shaking in their pants. Come Monday they will have to cover or hope the bulls will engage in massive profit taking...not happening.

This week's video explains in thre minutes how closely connected the western economies are.