Author: Peter Kurata
Covestor model: Smart Money
Disclosure: None
May saw the major equity indexes in decline. The weakness of price gains toward the end of the month, along with overhead pressure, suggests that the market is headed lower.
In June I like the Gold ETF (NYSE: GLD). With all the attention turned to the rise and fall of silver, gold has been quietly building the right side of its cup formation and currently looks attractive from a technical perspective.
Global default worries continue to be a backdrop to demand. Fitch downgraded Greek debt again and Jean-Claude Juncker, President of the ECB, warned that an audit currently underway may reveal that the country may not be eligible to receive financial aid next year. Norway has already frozen its 235 million kroner ($42.6 million) aid package to Greece.
