CURRENCYCOM:US30   Dow Jones Industrial Average Index
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Positive "news" drove the markets higher as first unemploment claims dropped significantly and retail sales surged.
This was the catylst for bulls to ignore our upper trendline with a punch through.
All the evidence pointed to exhaustion or an extreme mania finishing.

The TRILLIONS of methadone will keep this zombie alive.
Goosing the economy has to continue for certain...removing the punchbowl or some other event will blow up this illusion of prosperity.

We stand aside now, until a clear indication of a change in herd mentality commences.
How far can this stretch?.....perhaps only small corrections and much longer.

Gold and silver are telling us something which conflicts with our previous bearish indices stance.
We see the precious metals have bottomed and have started a dramatic wave 5 up.
This big rally cannot coincide with a severe correction in the Dow.

The correlation of both rising with insane debt levels is now probable.
We have choices and our bearish Dow position has been wrong.
Our bullish precious metals position has proved far stronger.

Good trading is to recognise opportunity and to acknowledge wrong calls.
Money management is critical....position size.

So we close out our small short and wait.
Gold and silver longs will reap the mega rally instead.

Good trading!

Comments

How far do you think it’s going to push before a correction
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Fractal777 Mensahjeffrey123
@Mensahjeffrey123, It defies everything as the Fed will control it's destiny now.
An acceleration has started where the incline is increasing.
These always end with a stampede to the exits..the difficulty is where it ends now.
Reply