Morning Comments

Stocks are gapping up this morning. Gold is down slightly. The 4 day cycle low on the SM is due late Friday +/- 1 day. The PM low is due Monday with GDX having a target in the low 25 area. Gold has a target of about 884/85 (GLD 869) Monday. I'm still thinking we could crack SPX 741 and that could land us all the way down to the 660/61 area by late Friday/early Monday. Many former bears at Traders-Talk are getting itchy to buy here. I'm not convinced we've seen the bottom of this move just yet. In bear markets, the surprises tend to be on the down side. We remain short both markets expecting lower prices. The stock market is oversold, but the PM's are still trending lower off of an extremely overbought condition. Like always, I'm willing to be wrong and am watching the stock market carefully for signs of a ST or IT buy signal. I just haven't seen it yet. As long as the SPX remains below the 780 level, we are risk of going lower over the next few days.

blu, could you clear up your inbox please, I tried to send you a PM but didn't work...

On the daily we hav e lost the upper BB flare away and are working on a BB breakaway bar
(Bar completely back inside the lower band with a higher close)
Not bearish usually. The basic BB "rule of thumb" would target the centerline, then the upper band.

Edited by selecto, 26 February 2009 - 10:37 AM.

blu, could you clear up your inbox please, I tried to send you a PM but didn't work...

I've been on moderation for defending myself 4 years now and cannot recieve PM's.

my e-mail address is cycle_wave@bellsouth.net

Check your email then

On the daily we hav e lost the upper BB flare away and are working on a BB breakaway bar
(Bar completely back inside the lower band with a higher close)
Not bearish usually. The basic BB "rule of thumb" would target the centerline, then the upper band.

That fits with what I got too.