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Stocks rally today following that five point eight magnitude earthquake that struck here in the northeast.
-- actually surged 322 points gold futures on the other hand snapped a six day winning streak.
-- to 1861 announced Phillip Roth joins us now cheaper market technician from Miller tape back and company okay fill a what do you think -- this market.
Well I think it's really tricky for most people but the important thing is -- climaxed on the downside in the second week of the month we had a selling climax.
Those events usually produce a short.
Lived rally which is what happened they usually produce a test of some kind and then a more sustained move I think that we completed the test today.
Tests -- -- we go weeks are going up again we're gonna have a temporary recovery OK so we have a temporary recovery in equities markets stocks start to go back up will we -- more money coming out of gold.
Well for the short run.
-- People are probably going to be taking some profits in gold because head of it's a very very sharp move and -- got very extended.
But and I don't think money went directly from stocks to gold.
They're two different place people are confused about the stock market because -- confused about the economy.
A gold is really a play on global good fortune of currency so it's which really a different thing.
Seizing money came out of this spiders money came out of the stock market because people wanted to put under the mattress.
They put it they put it in into bonds and they put it into very short term instruments they're willing to take a very.
Low rate of interest for the safety -- So this notion that you know our baby boomers are nervous and they're selling stocks.
That could be pulling the market down but you're seeing that money's not turning around and going into gold.
I think that's.
The baby boomers got out -- several big waves in the -- ten years.
They got buried in -- whole -- -- who they are buried again in no way they never came back in in 2009.
2010 it's purely an institutional market now.
So that's -- sell this in this market that.
Well I think that there are no investors in the marketplace it's hedge funds trading with one another so they're the ones on the soft right now well.
Overly invested in the second quarter.
That's scared out because of the financial conditions in the world.
That selling got overdone temporarily and now they gingerly coming back and little bit so you have money what do you buy stocks or gold.
Well that depends a month's time horizons.
If you if you have to be very adept -- to make money in the stock market.
War take a very long term view.
One thing you can say is I think the only way we can have a bull market.
Is for people to believe in global growth resuming.
Otherwise they don't go up and if that's the case then you want to buy cyclically sensitive stocks.
Goldman Sachs Kong gold at 186012.
Months from now -- where it is today so maybe.
You're on to some -- there.
Well I think gold is in the long term bull market -- can -- us for awhile it's going a lot higher.
So rob thanks for being here -- it seems like both -- gone higher than sex.
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