I’m pretty convinced now that the relentless march upward of the markets is coming to a bump. No way of telling what sets it off but this significant divergence is revealing waning buying enthusiasm.
Some chartists believe that all known events are already reflected in the price patterns in the chart. They spend a lot of time trying to divine MA crossovers, MACD, Stochastics, Resistance Support lines and many more technical indicators. I too believe strongly in technical analysis but of course equally strongly that one piece of news […]
You can always find some fundamental reasons for diverging opinions, but I look at charts for the objective one. In this case despite the pessimism of the news and US budget deficits, the dollar appears to be bottoming out.
Gold is in a downtrend. If you look at the chart you will see the double top with multiple red divergence paints showing before it rolled over. Now it’s flashing divergence in the trend and set for a rebound. The news in Egypt should put a temporary psychological kick in the price too. Longer term […]
This is a repeat of a prior post. I only wish I had listened to my own advice as we made so much money on this trade we didn’t keep enough of a tail. We have a small but exciting position in an Israeli based company, SodaStream International, Inc. You basically buy their product and […]
We don’t have many friends in the Mideast. If Egypt is the strongest ally we have in the Arab world, it’s hard to believe that we can’t improve our position here. It’s either Woodstock or Altamont.
We are now heavy into gold stocks, ETF, and USO. The situation in Egypt going into a long weekend and the end of the month will make hedge funds nervous. Expect a very weak close. Hedge as much as you dare.
The Fed decision today to leave rates unchanged should provide some near term impetus for gold to trade higher. These two prominent gold miners, NEM and ABX seem technically poised for a bounce.
We have a very high cash position right now, almost 50%. Half of the securities we own are municipal bonds we blogged about earlier. The rest is in Intel, AMSC, ARTC, and a new position, SHLM. We could be all cash in seconds and net short. Stay focused you should get a buying opportunity soon.
Everyone is fixated on finding the next Apple, but look at this stodgy department store, Dillard’s. The stock rose twenty fold in twenty three months. Too bad I didn’t buy it. It’s been on my screen since $2.75.