Saturday, February 21, 2009

Saturday update...




The markets are starting to breakdown, Tim Wood at FinancialSense has given a Dow theory sell signal, and the dollar is strengthening again as I would expect it to, just as another decline starts. This time, Gold is rising instead of falling with the rising dollar, something I didn't anticipate. It's still unclear if that will continue. Shown is one of the $NDX charts, it's still dancing around the same levels as before, but these markets are weak, and it may start serious downside at any time. Both $NASI and $NYSI are now declining, so this too is giving a sell signal. I will be going into full Bear mode next week....Leveraged Bear ETF's are a good choice here......

Additional point, a Bearish entry might make more sense after the smoke clears from Obama's speech on Tuesday. Markets are short term oversold, so keep thus in mind, it may bounce from the after effects of the speech....

1 comment:

cezarfi said...

Mark hi,
How about gold? generaly speaking the ratio gold:oil has been 10:1 most of the time. Not today. Will gold decline or vill strach the ratio even more?
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Istvan