Christopher Carolan, Editor
On Time Update
22 March 2005 9:45 AM
PAUSES
Bonds are more vulnerable to a rally now than at any time in the past few weeks. It’s time to cover the short position at the market. The latest intra-day down trend failed to gather momentum. A positive intraday trend could combine with an improved daily trend to take bonds back above 111 20/32.
On Friday I wrote: Gold and the euro daily trends have both turned negative. Both markets have formed RSI divergences, Cycle-trap reversals, and bearish net line penetrations in the past two days. Gold looks to pull back to at least 430. I didn’t think gold would take only one day to reach that target! The solunar model indicates gold and silver are very vulnerable here. The February gold lows below 415 are a possible target price.
The S&P is accumulating more evidence for a rally. The 135 minute trend is now positive. The tick and tricks indicators are at extremes and the advancing volume has a postivive divergence. I have no interest in trading from the long side due to the very weak longer-term trends, but the probabiliry of a 20 point S&P rally is growing by the hour.
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