Charts are provided by KhronoStock.com’s contributor Andrew Cardwell.
The US dollar is still hopelessly maintaining its downtrend staying below Andrew’s complex price average “the number”, with a weak RSI below 50. A rally in the dollar is simply out of the question given what is on the chart.
Gold is staying very strong ready to make higher highs. Higher trend is supported by the “the number”. Its RSI seems to be ready to shoot to the upper range of the bull range between 40 to 80. That 1250 target seems within reach in the near term.
SPX definitely corrected its oversold state with RSI plunged from the upper 70’s down to the 50’s. There is still this sign of a bearish divergence with RSI making lower highs while the market climbs to higher highs. If not an major top, at least an intermediate top has been put in place. The fact that gold and the equity market are moving in sync is by itself a divergence.
Tony, Do you see a possibility that financial start crashing down and at the same time commodity and gold soar. I am thinking about shorting financial by buying FAZ and going long on commodities. Is there any source so when can figure out if the big boys money are going this way or no, I mean from financial to commodities?
stay away from FAZ this sucker will eat up your money at much faster rate then you can ever think… I lost over 100k from it… fed won’t let financial crash!
Well it’s hard for commodities to have broad based rally while the equity market collapses. Just look at last October through March of this year. Everything just went down. Gold would only soar if the dollar completely collapses or inflation is rampant. I don’t see either of these two things happening in the near term. The gold trade is getting a little crowded so be cautious.
Gold is telling us non trust of bernankee the yankee killing the dollar in order to raise
off shore earning of S&P companies. You will see them all beat by 3-5% based on
the ongoing devalue of the dollar.
He is a goof that will stop at nothing to serve his corporate masters, your end result
will be higher prices and infaltion rates of 33%. The US imports everything and there is
nothing but marginal manu left on shore.
Gold us up in after hours. the saudis & china do not want boatloads of newly printed
bonds and ollars and gold is telling u that. It is not a crowded trade–yet!!!
Don’t short stocks. Buy gold or gold stocks. Buy till it hurts for your own financial
survival. What is happening with the usdollar is exactly what happened in britain,
the USSR and all other failure systems.
America did not deleverage. The dollar is dead.
Gold, bonds and stocks all higher? When have we ever seen this before? October
last year just before falling off the cliff.
Careful, do not short, don’t feed goldman bonuses. Go to gold and secure your future in the order that emerges. No one believes this gold rally. ZeroHedge is anti gold,
anti stock.
When stocks tank (and they will, some day, right after u go long) gold will fly, we will
see 5,000+++ on the panic that ensues.
John Embree, one of the greatest gold traders in history at Sprott Funds put it best.
YOU DON’T WAIT TO BUY GOLD, YOU BUY GOLD AND WAIT.
Listen to CNBC talking heads. Gold is still a failure based on previous prices. Not
a word about stocks or the dollar being dismal investments and losses.
If the stock market panics down the gold stocks and gold will tumble as well.
Just look at 1987 the gold stocks were the most down….
fund manager will always dump first assets where they think there is valua and therfore there is still a market for high volume !!!
So just be careful !!
I was a trader in 87. golds had 3-4X into the crash, of course they were down
50% vs 25 for overall market.
BULL MARKET.
market is on crack!
Bull something.
Down 300 today.
are you serious?
What are your thaught about BIDU?TIA
I was thinking about buying some puts but I just don’t wanne fight the trend( learned my lesson already) But yesterdays close looed very weak and as we go into earning seasonand OPEX I think we will see a sharp (980 area)pull back.
If you feel bearish by nature ( i have been feeling that way for a month) don’t go and
throw money at goldman by buying puts or doub inversers.
Get to gold. Gld, slv, ptn are all the new short sale. Screw em at goldman, buy something real and preserve capital.
—————— OIL —————– FLAT from where i jumped in short yesterday. failed trade. placing a stop to limit loss if it surges.
good luck today!
swapping my short in SHLD into NYT….. cha ching
NYT down over 1% and SHLD up over 2%
————— the dollar, as per above charts, very oversold and can bounce ———-
hope you were in SCO.. 16.50 now
Woo when are we selling SCO?
No intraday link.
What happened to the commentary section? Did the Bears capitulate already
just joking guys
Bears have hardly capitulated. Note increases in AIG, BAC, COF, etc. Its business as usual. New shorts being added as fast as the old shorts get squeezed out. And the cassino is raking it in.
I hear ya!
S&P 500 P/E – Sound reasons for a stock market crash:
http://newsusa.myfeedportal.com/viewarticle.php?articleid=446
Does this not point to a crash or at least a massive correction?
The bear is dead.
Bulls need to get that in their head.
How long will you guys call the top?
At 2000 on the SPX, I bet we’ll have people saying this is the top guys, this is PRIMARY WAVE 3.1472568, ZIGZAG XYABACCCCCC
lmao
Wrong. It is primary wave 3.14159265358979323846264338327950288419716939937 and does that mean we should buy or sell PI er 1 imports or PI edmont mining?
The intraday commentary is accessible from the Social page. You guys might want to go there. For whatever reason it’s not showing on the main page.
Intraday Commentary Link is here
http://www.stocktock.com/2009/10/07/intraday-commentary-10072009/
Yeah, lets all rush over there to hear that asshole bullish bear piss off common
sense with his blather.
Stocktock has few posts today (the bears have capitulated) !!!
The top must truly be in now, or damn close to it.