Couple things:
1) Dollar looks poised for a COUNTER TREND short term rally. As noted on the chart, it has broken DOWN from its bearish wedge. I expect to see the dollar test its $71ish level over the intermediate/long term.
2) CHK and TIE look to have set short term/intermediate term tops along with the major markets.
3) S&P and NASDAQ look to have topped out in the intermediate term. Nice bearish candle on the S&P yesterday as it tried to get back up to its top of a couple weeks ago. Nice double top on the NASDAQ as well.
4) Sentiment is at a point (1.40 bulls to bears) where I would expect the market to head down.
LONG TERM.......watch the US Dollar to head south........and watch silver to head NORTH (over the long term).
Thursday, May 21, 2009
Friday, May 08, 2009
Four Things To Note....
1) Commodities continue to "rock": CHK, TIE, CPSL. Growth in Asia and Latin America should continue to push up commodities. As well......the US Dollar is weakening slightly over the past several weeks as the dollar continues to move DOWN out of its bearish wedge.
2) Treasury: Money continues to move OUT of treasuries....and find a home in stocks.
3) Interest Rates: They have been pushed UP recently.....and I expect them to move higher over time. Higher interest rates is BEARISH for bond funds......so money should move OUT of bond funds as well.
4) Asia: As noted this past November....Asia is the FIRST to recover. Korea, India, China...etc.
SOHU continues its move upwards. As noted earlier in the week.....resistance came in around $60....which pushed the stock down until it reached some support at $53 - $54. I expect it to move UP out of a BULLISH WEDGE in the short term (next week).
2) Treasury: Money continues to move OUT of treasuries....and find a home in stocks.
3) Interest Rates: They have been pushed UP recently.....and I expect them to move higher over time. Higher interest rates is BEARISH for bond funds......so money should move OUT of bond funds as well.
4) Asia: As noted this past November....Asia is the FIRST to recover. Korea, India, China...etc.
SOHU continues its move upwards. As noted earlier in the week.....resistance came in around $60....which pushed the stock down until it reached some support at $53 - $54. I expect it to move UP out of a BULLISH WEDGE in the short term (next week).
Wednesday, May 06, 2009
In Memory Of Dom Deluise....
Here are the outtakes of Cannonball Run with Dom Deluise and Burt Reynolds.......enjoy.
Monday, May 04, 2009
US Dollar......various timeframes...
1) Daily Candles: Here's the dollar on the daily charts, breaking down from a bearish wedge.
2) Weekly Candles: And here is the dollar........again breaking down from a bearish wedge.
A continuation of the US Dollar breaking down should be good for commodities. For the US equity market outside of commodities.....this won't be perceived as a good thing if it heads too low.
Remember..... we (the US) have to finance our deficits with treasury borrowings. If the dollar falls too far......it will push interest rates UP......and either cutoff the recovery.....or stoke the flames of inflation (or both).
2) Weekly Candles: And here is the dollar........again breaking down from a bearish wedge.
A continuation of the US Dollar breaking down should be good for commodities. For the US equity market outside of commodities.....this won't be perceived as a good thing if it heads too low.
Remember..... we (the US) have to finance our deficits with treasury borrowings. If the dollar falls too far......it will push interest rates UP......and either cutoff the recovery.....or stoke the flames of inflation (or both).
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