Sunday, December 19, 2010

Week-End Summary

It seems market is in a topping process.
For this time, market gave us so many signals we just had to read them and act accordingly.
Next week probability is high for manifestation.
I protect everyone to go to the bearish side. Be careful with that. Bear bet needs extreme good understanding of market, also needs proper timing. On top of that FED is constantly manipulating the market, so surprise upside is possible at any time. However I warn you: don't jump in too early with bull. Be patient. I expect a minimum 2 selling cascade lasts 7-12 trading days at least.

So we have time.

2-Days RUA:

2 days RUA chart looks rock solid bull. Noting to worry for long term investors yet.

1-day RUA:

Questions start on 1 day RUA chart. Histo bear cross is imminent, oscillator demonstrates local bull exhaustion. MVO shows exhausting local bull surge, however momentum is still healthy.
What gives reason for some worry is the diverging sentiment indicator. That shows decline while prices go up.
This discrepancy needs to be noted I feel and signals some trend change.

60-mins RUA chart:

This is a non-public setup of 60-mins RUA volume change. You can clearly see and follow the current bear exhaustion. Please also note the huge selling volume bars explain what happens behind the curtains: smarts sell, and a very well coordinated organization buys and saves market. Question is for how long FED plays this game. Ben, please let market down, you stretched this market to extreme bull. Longer you stretched bigger it corrects.

 Dollar 1-day:

Whatever Ben does, dollar started it's bull turn now. Smarts buy. Please observe flat selling volume and large buying spikes. Dollar rally is imminent. It will drag market down, also will hurt precious metals.

Dollar is heavily manipulated, so I still expect some spike down, but once things start to get their original directions.

GOLD 1-day

Gold bear is getting be stronger. It's heavily manipulated, and smarts need to manipulate prices up in a downturn as well, while they don't take profits from their current level of stakes, and buy cheap puts.

Gold 2-days:

More and more proof of bearish turn.

SOX 2-days:

As you know I am a big SOX and copper - fun.  Sox usually predicts general market direction.

SOX 2-days is still healthy, but momentum VRSIhas a serious decline. Warning signal.

SOX 1-day:

SOX 1-day has a clear bearish indication.

Histo made a bearish cross, oscillator is under critical level, SBV made a clear cross, selling volume elevated.
Bearish manifestation in progress.

SPX 1-day :

Histo bearish cross is imminent,  MVO had a bearish indication days ago, momentum is very close to critical level.

60-mins SPX

Current bearis cycle finished, huge selling volume spike can be observed as well. A starting MVO bearish signal makes it clear: second bearish attack started. The question is now: will FED still manipulate, or realize that smarts now much stronger?

We are out for weeks now with a minimum core position we will not give up till hard liquidation levels. In my next post I'll show you how to buils SIL and $HUI levels using ichimoku.

Good luck!

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