Bullish Market Action

Notice that on the weekly chart we have just slammed into resistance at the 75 day weekly MA.

 A convincing break above this level is needed for a breakout to our current target of 1380.

The market has whipsawed us back and forth over the past two months, and seems to be more interested in creating mischief for investors rather than profits.

I remain cautious at this point as bad news from Asia (China) could slam the market down again.

At this point I am fairly confident we will see a rally until early November barring any Black Swans start flapping their wings. 

I am particularly bullish on gold here, but keep in mind there is significant leverage in the gold market, and I expect a substantial pullback again once we hit our target level of 1870, so proceed with caution.


  1. Rallies in a bear market are extremely seductive, be very careful. I think we can say up to this point as well PW, that " Operation Twist " is a complete failure at this point. It was tried in the 60's and failed then as well.

    Holding TBT Nov calls.

    Be well

  2. Holding an inverse oil fund myself. I expect that once this rally plays out we will look at another plunge, but sometimes these things take longer to unravel than I anticipate.


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