So I just went cash heavy today and took some profits. I think we're going to see a dip before we start going back up again for Christmas.
It appears that too many have gotten into trouble with Leveraged ETFs and the Margin Requirements are being tightened. Non-Traditional ETF Margin Requirements
Employment numbers coming this Friday. This could be a big market mover. People are flocking into gold stocks (some of them were up big the past day or two).
Is everyone ready for the after Labor Day tank? Is fitting how China increased thier limit on how much foreigners can invest in their country. Probably time to close out my long tab in the U.S. and go short!
TICK has been on the high side and we are up only 10 or so. Might have to see 970 - 980 in the near future.
I need HL to come back down to the $3 area and then Gold can go Upward. You are <i>Looking for market to fall apart </i>. Do you have something more concrete in terms of an expected percentage decline or an expected support level that it will come to rest at?
I'm not so sure. I completely cashed out today and history says when I do that everyone else gets rich. But I am looking for a good entry point back in in the next few weeks.
I agree with ya Cxbby! It will be a Massacre on the order of 180-270 S&P points south from Tuesday all the way until Wednesday of the week after. I am looking for a severe drop when we turn our screen on Tuesday. There will be an immediate bounce off the lows. Keep on selling these rips as I see weakness all through September and October. But, we will bottom in November and from there I will be a bull again if there is any market left! I see gold rallying all the way until mid-February 2010. - Stakes are high
The SPY broke down on huge volume last Tuesday. I see this as a reversal candle signaling a intermediate top, at least. Maybe a long term top. The last two days we rallied on tepid volume into that candle, which reaffirms this bearish scenario. However, the strongest evidence is the breakout in gold. It is not a coincidence that gold broke through its Triangle formation the day after SPY's huge reversal candle. Strong rallies in gold are commonly accompanied by pullbacks in the equity market. I don't have an expected percentage decline. I am not sure exactly how it will play out. It is just a sense of the general direction based mainly on SPY's correlation with gold. As I noted in the TA thread, I believe the Triangle formation, and subsequent break at $95 for GLD is more significant than the $1000 psychological level. Thus, I believe gold will not have too much trouble at $1000. If that is the case, watch for the bear scenario for equities to play out.
That's because the dollar looks like it's toast. Euro/USD = 1.4433. Thats the only reason futures are up!!
The Advance today has a narrow base with Energy names like XOM and CVX doing the heavy lifting amongst the Major Large Caps. With MSFT, JNJ, IBM, WFC, WMT, PFE, INTC showing Red at the moment and BAC along with CSCO barely Green, this isn't extremely positive at the moment.
