Tuesday, September 21, 2010

Quick update

SPX: Today's FED decision is a clear indication of an ongoing QE.
Things happen as predicted, internals are weakening.
R3K 1-day histogram gives weak signal, but oscillator is still above the critical level, also there is no rising sell volume signal, means we will see a new smart-trick again: bounce market with a 1-2% and then make a dip-buy to continue current trend.
Of course, masses will identify downward price movement as the end of this bull rally, will liquidate their positions and load puts to short the market. They will loose their position and give their gains to smarts and cover at higher level..
We will do the same as smarts, and, if our volume charts confirm bear-trap, we perform a 1 unit of dip-buy.
As per moment I see minimum 2-3 trading days before stocks start their decline. Close monitoring of 60-mins charts is strongly advised.

GOLD: USD is just on side of falling under a critical level, 80. This is a clear signal of artificial dollar weakening, a clear path for dollar devaluation will send gold to extremes. Please don't make a mistake: it's not same as inflation. It's a debasement risking dollar to loose it's reserve status.
The only thing is to sit tight and watch the show. Smarts are constantly pushing their volumes into PM sector, they just will make more space to buy cheaper. What we need, strong nerves in the upcoming days to see our miners loose 1.5-2% from their value. Smarts eager to inject more into PM sector. It will result a very quick upswing move in prices, starting their game with futures leave masses out again.
I will not sell any of our HUI unit till 3-day chart has a clear sell signal.

Silver: as silver is partially an industrial metal as well, coincidence of expected stock market correction and gold correction will result a sharp fall. One needs very good stomach to digest 3-5% loss on this sector, but upswing on gold and spx will make an even more sharp shoot up on silver prices. In order to eliminate risks 2 and 3-day XAU reading and close monitoring is needed.

All of our soft liquidation etc remains same.
If I have time I'll put some charts as well. For this time I am sure you have an MV account and you see figures.

Ride this bull, dont give up, be smart!
Good luck!

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