Dow Pops to new 5 month high/ no confirmation from S&P

Here we go again, with the Dow making a fresh run above the 12250 level in the cash. 12,500 should be resistance. However in the broader S&P 500, we have a ways to go to challenge 1292 which was the October 4 month high. Currently trading at 1265, we have 30 handles to go to challenge that level.

I think we just might challenge that old high in the S&P by the end of January. This week of trade will be suspect. IN fact, I recommend not trading this week due to the thin markets. If I had to trade, I’d be on the […]

Gold at 1575-1572 Hits First Long Term Support

There are 3 long term trend lines to look at in Gold.
The First extends back to the Sep 2009 low at 1022 Hits at The Feb 9th 2010 low at 1070-=– It projects support at 1350.. HMMM

The second Starts at the Feb 9th low at 1070, hits on the July 28th 2010 low at 1071and projects support at 1485.

The third is one we just bounced off at 1572… It starts back on July 28th at 1071, hits again at jan 27th tick at 1318 and projects to the 1575 level.

I noticed today that Cramer is friendly gold. He didn’t mention this […]

Dow Index remains stuck below 12,200, what does that mean?

I can’t for the life of me wonder what is keeping the lid on Dow index above 12,200. 8 times in the last 2 months, we’ve challenged that level and fell back. Last Thursday we traded well above that level, up to 12,293 intra-day.. Break out traders had their windows broken out, however, as the index settled below 12,000, giving any unlucky and johnny=come-lately bull a 300 point bloody nose.

Once again, today we poked above 12,200, only to slip down to the 12,000 level again… Quite honestly, although the TV and Radio pundits cry like starving new born babies when we have a down […]

Fade the Public and the Professional’s Bearishness

This morning a friend sent me a statistic I found very interesting. If you have read my stuff at all, I am a big fan of being contrarian.
Presently we have a situation where the public turned bearish stocks a few months ago. As of this writing, that bearishness has only gotten more extreme.

Even more interesting is the bearishness of institutional portfolio managers.
We have the Dow at or challenging 5 month high prices. The S&P is fighting resistance. However, if this upper lid does not hold, sometime between now and the end of January, we could have an extremely harsh correction higher.

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Dow and S&P Diverge

Dow Index moves to a new 5-month high and high settlement. No confirmation with the S&P though, with that index 25 handles away from similar multi month highs. For now, I am suspect and would be more inclined to sit tight and look for a definitive move.

My opinion is that we will probably drift higher, however, if there is any negative news from Europe, I’d say, look out below. We are at the upper level of the 1000 point trading range. This could be a bull trap. Make a new highs. Get every one back in the water. Then Jaws comes swiming up and […]

12,183 today’s high (What lurks above 12,200? )

12,228 on October 27th, 12,194 October 28th, 12,203 on November 14th, 12,178 last Friday, 12,183 today…5 trading days over the past 6 weeks. This is high tick that extends back to August 1st… So we are sitting at a 4 month high and can’t get through.
I am not sure what this means. Quite frankly we could pop up, spark a short covering rally and then hit the wall at 12,675 and then careen lower, or we could remain in the 1,000 point trading range and drift back down to 11,200…
At this time of the year, we tend to drift higher.
The trade is […]