Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Thursday, October 15, 2009

Well I would like to make it official


We are working on a Top.

the dollar and gold traded through yesterday's high. Now the question is... they look to bounce...

and the question is do they trap sellers and make one more high... or do we make an upswing that fails?
Looks Lousy... didn't we have that technical pattern called 3 domes and a steeple? I joke, and yet!!!

3 comments:

Tony said...

I know this sounds too subtle, but the "tell" might be LQD which has underperformed TLT and IEF over the past 4 weeks... the first rolling 4 week underperformance since March.

This is a disconnect with the rise in SPY and that might represent the "melt-up" in SPY. very subtle, but that might be the only sign.

BTW, CSX short triggered for a day trade.

Tony said...

I'm liking GDX short too.

Eric said...

I'm tracking forex and gold... and the brian shannon "lower low higher high"...

well the danger, and I'm not saying it. but the danger is that this lower low today then shoots to a "Top". in the this term...

I saw some oil charts that looked like a nice consolidation to shoot higher like 10% and then top.

not sure if that will be dollar and gold correlated....

but it's also possible gold pulls back below 1000 then traps some shorts and shoots higher on a buy the dip into Euphoria....

which gets gold on my newspaper in the spring or something.

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