Charts from Today

GDX is beginning to crack. See for yourself.

Silver is too. Take a look.

Stay tuned, more to come next week. 

Darah

Gold and GDX Are Doing The Complete Opposite.

The market is full of bloggers who write their own forecast. They’ll tell you one thing, and then another. Some will call it early, some will call it late. Some call it late because they’re afraid to call it period.

But, what you don’t know is the trend. The trend dictates direction. Direction tells you where.  Direction tells you everything. 

The Gold market is in a BULL market. The long-term trend is up. The intermediate trend is up. The short term trend is down.

Name a point in time when levels of bullish sentiment were at extremes, and you have the majority of people calling for a top? 

It just doesn’t happen. 

Take GDX for example. GDX has extended to marginal highs, but if you look closer, its individual counterparts are struggling. GDX is made up of 49 stocks, 21 of which have reached new highs. The other 28 have not. 

Those numbers aren’t terribly bad. They’re also not great either. And if GDX goes higher, those numbers are subject to change. I know.

But, this ETF is cap weighted. And its top 10 holdings account for nearly 61%. 

Only 4 out of the 10 stocks have reached new highs. 3 out of those 4 are ranked in the bottom half. 

Can these numbers change? Sure. But if another stock, or group of stocks break to new highs it does not project a bullish outlook. It’s called front running. 

Front running is a trap. And a very costly one. Front running makes you think what isn’t. Front running is also short lived. 

The culprit will be the dollar.

From 2014-2015, the dollar rallied for 10 consecutive months. Today it suggests nothing short of a consolidation. Its intermediate trend is up, and still looks very bullish. It too will rise.

Monthly Chart:

The next few weeks should go something like this. GDX attempts to rally a wee bit higher. But, anything higher is only to form a top. Then comes the selling. 

And the correction coming is not going to be pretty. It’s not going to be short. It’s going to last for several months, and run late into this year. It’s also just around the corner.

GDX Weekly Chart:

Darah

GDX and Gold Rally is Suspect

The volatility on Friday created a technical aberration.  Still, the overall picture hasn’t changed.

It will also be pretty difficult for Gold to overcome the 50 MONTH moving average, on the first try. 

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah

GDX Topping

Very good chance the GDX has topped today, or will next week.  Be watching for gap fills on the way down. Also note, this correction should be much bigger.

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah

Chart of the Day

The market has completed its correction and now on course to new highs. Be watching the next resistance zone between 2130 and 2180.

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah

Market Update

The warning did not come until Thursday, when price had several attempts to rally, but instead dropped to its previous low.  Now after two failures, a third test of the lows would undoubtedly break support and send price in a precipitous decline.

S&P 500- 4 hour chart

Other clues came during the last 2-3 weeks of the advance, when price would accelerate to new highs, but after a few days a minor correction occurred. The pattern now has formed several mini peaks along the way, indicating momentum loss.

S&P 500- 4 hour (chart 2)

 
Technically, since we are still in an uptrend, there is the possibility of a final short-squeeze to higher highs. Anything upward of 20, even 50 points would theoretically take the S&P into May for a top. The result would be a divergent peak, indicating the rally is a bad one. It would also be the best scenario for the bulls - as price would form an even larger top, providing enough time for everyone to get out.  In any case, whether we drop immediately, or continue on, the coming decline should lead to a 2-4 week sell off.

Stay tuned, more to come next week.
Darah

http://thecompletecoveragereport.blogspot.com

ALL THE WRONG REASONS!

While most 4^th rate analysts unwittingly misdirect you into watching for a big dollar collapse and cling on to its alleged correlation to gold, all you have to do is look back a year and see their relationship is worthless. The gold trade has been an obvious disappointment and its most recent breakdown through 1320 has brought about a ‘think tank’ infested with analysts fetching for all sorts of reasons that seem rational for calling a bottom. None of which are true--and of course these same analysts that tell you to keep an ‘open mind’ are the ones mentally blocked from knowing the characteristics of a downtrend. And they’ve been sending you emails and newsletters for months saying this “JUST MAY BE the TIME” we have reached the final low!

As you all know the reality has been much different, with every rally being met with tremendous selling pressure, giving you no indication of a possible bull market. Did you ever think that once the bull gets underway and reaches 3200, they will all tell you it’s time to get out?? The same crowd of forecasters that were keeping you in at $2000 have ridden the bear “A L L- T H E W A Y- D O W N” to these current levels, still claiming every oversold condition is just a pullback to a much bigger uptrend! I’m sure after 22 months it will be that ‘conspiracy theories of manipulation’ or some ‘finishing wave count’ are the reasons.

Truth is, once you break the apex and have a lower low you add the width of the triangle from the breakdown point to get the measured move. This shoots for a price target of 1200, which is a minimum expectation, but perhaps on the next failing rally we will see a climax low to 1140.

CHART OF GOLD (1)

That also would have price return to the 61.8% area from the lows of 2008 to the highs of September 2011 and a good place for an extreme reversal bar to appear.

Chart of Gold (2)

 

Here too is a potential fold back measured move from the point the trend went parabolic in 2011, to where we are now in the current downtrend. Notice that the parabolic uptrend of 2011 equals the parabolic downtrend of 2013 in size and that it happens to fall in the vicinity of these same target lows. Not to mention, the downside volume is now much lighter which is a sign that most of the selling pressure is being absorbed by central bankers and giant institutions controlling the demand.

CHART OF GOLD (3)

Most people lose money in downtrends because they have no strategy, they become instant long term buyers, and, they must ‘wait it out’ only to recover 70% of their losses, if they’re lucky. Timing the market is not the same as ‘time in’ the market and you should know that after a price base of 4 to 5 weeks your odds of ‘a bottom’ is more likely. Or basically draw a horizontal line from 1200 out, and even with giving five or so percentage points to account for volatility it won’t be a surprise to see in a couple of weeks that price will be trading flat. We are hovering above extremely tough support on all time frames, and once 1350 is regained, the bull market will launch!

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah



 



DOWN AT THE DEPTHS

The price of gold is forming into a sideways base that after several weeks, has experienced minimal downside. This is an encouraging sign because it’s a testament to the metal’s underlying strength. It also provides technical evidence that price has the ability to hold, and that there is indeed, “life on the floor.”

In addition to the array of sentiment and internal indicators that now all point to a major bottom; only one--- focuses on TIMING. The moving average--of gold, stocks, what have you, essentially traces price information of the past, but applied to the present. And a good rule of thumb is to wait for the moving average to catch up, flatten out, and then change direction to confirm a bottom.

But do not ignore price alone. After all, price determines its own fate and the moving average is merely a fine tuning. Together, the two provide a technical interpretation that is more insightful than observing one independently from the other.

The twenty day moving average is a case in point, and perhaps very fitting because it encompasses the short and intermediate term price action. Twenty trading sessions equates to one month of time; and most trendless markets tend to run about six to eight weeks before presenting a directional move.  Overlaid on gold, the slope is not only beginning to arc sideways, but now resisting the most recent decline. To explain this, older (minus) readings are being replaced with newer (positive) readings, which on a time scale of twenty trading days, absorbs a broader development and not so much, the short-term gyrations.

Gold remains very much locked in a basing chamber, both seen by price and a trendless moving average. But all factors included, the current bottom forming is, shall we say, “nearing the end of its time zone.”

The climate down below is improving, and looking favorable, more than it ever has before. The inevitable chain of events is predictable; where price ultimately must leave the ‘basing phase’ to begin trending again. And undoubtedly this will cause the twenty day moving average to rise.

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah

A STOCK MARKET ENDING

The individual stocks of the equities market are no longer keeping pace with the broad averages. A vast number of these stocks have faltered because the trend itself has become ever more selective. What initially started as a robust, broad based rally is now narrow; and can only be supported by a handful of stocks.

The S&P 500, which is greatly exaggerated from its components, and perhaps can push a bit higher, is experiencing its very own reading of ‘number of new highs’ increasingly diminish. This particular statistic is useful during an uptrend because it determines strength, participation rate, and only the initial spotting of a divergence reveals that trouble is brewing.

The reversal however will not come immediately. The trend matures, and its remaining strength allows price to carry on. The divergence that was previously recognized is now deeply engraved and building on all fronts. More and more stocks will be left behind and the few that thrive will become stretched even further. All decisions, rational decisions will be overcome by greed and investors will pile in to chase the last bit of euphoria.  

But ultimately what lies ahead is a dead end, where the climate becomes treacherous. A terrifying, trendless market at formidable resistance begins to emerge. The trend is immobilized and prices then shape into one large distribution top. Then, after enough time sets in, the shaky pattern cracks, the market reverses, and like a flood in destruction, it drags everything in its path!

It’s the beginning of the end, and the stock market ends up fighting a cyclical clock of nature. At every climax, prices are deprived of oxygen and must retrace their journey to lower altitudes. This most recent sideways pattern of heightened volatility, represents a saturated state of exhaustion, which calls for a major topping process that will inevitably fall apart!

S&P 500 v. Number of New Highs

The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah
 

 



 

THE PATTERN OF PREDICTABILITY

Investors have experienced a state of prolonged frustration--where prices are TRAPPED between the upper and lower width of a symmetrical trading band. This is a reversal sequence that is gradual in nature, but unfolds in a horrendous ‘up and down’ affair until a sufficient amount of both time and distance is reached. Prices here regroup, gather strength, and undergo heavy accumulation as both, buyers and sellers, eagerly anticipate a forthcoming directional move.

Word out is that the most current and up to date pattern of GOLD is shaping into a five wave structural decline that in most cases, signifies the completion of a trending move! But there are some circumstances where it’s not impossible for the price to subdivide into six or even SEVEN WAVES before the pattern reaches its culmination; especially in a mature advance or one that stays in effect.

The ACTUAL pattern developing is a contemporary variation of the [seven cycle pivot-wave-structure] - which formed in 2008. The end result that is occurring now- is a six to eight month advance - that will (with certainty) reach a minimum target of 1900, or as high as 2200 in the most bullish case.

The canvas below is a reminder that ALL patterns repeat themselves and, if you will notice in this alphabetical sequence – G completes the developing structure.

GLD- DAILY CHART (click to enlarge)

 

WHY the pattern is reappearing is of no interest, so long as we can observe that it exists! And from the looks of it, the first test of survival is complete and what lies beneath the surface is the muscular structure of one STRONG OX, in the best shape of his life!  

Investors want to know the bottom line - and "the end" of this multi-month correction.  As late as early March, gold will have reversed course to fulfill its long awaited uptrend.

The CC Report offers two subscription services---$9.95/month or $100/year. It is well worth the information received.

www.thecompletecoveragereport.blogspot.com

Darah

THE TIME IS NOW FOR ALL GOLD INVESTORS!!!!

There is a universal understanding that no major trend can exist without Major Institutions being ‘in on’ the trade. With the deepest pockets on Wall Street, these BIG BULLIES are also notorious for manipulating the displacement (of shares) at key bottoms in order to better position their entry points! The most traditional and common method is a running of stops at crowded support levels. It creates a forced debacle where prices are in a reeling tail spin, leaving investors totally shell shocked! Then within days, or in some cases intra-day, prices immediately reverse back to their collapsing point.

The Miners is a working example- because its chart pattern is a clear cut technical aberration with now an oversupply of shares up for grabs! And this inspired stroke of selling has generated a deeply oversold condition that is, comparable to the “July Bottom”---- of which came several days prior to a multi-month advance.

But this discrepancy and perhaps most encouraging sign of all is ---that prices are residing at higher levels! Let me explain.

Elevated readings of the ‘Gold to Miners ratio’ have a credible tendency to mark important bottoms. Readings, especially this past week, certainly justify the current climate as not only bottom worthy, but very stretched-- while holding safely above the “July lows”.

There is an implication here! And that is, that the most recent three day wipe out is unlikely to go much further because everyone who would’ve sold out, has already done so! This ground halting reversal will be in keeping of a larger framework of the current Bull market’s livelihood, and that is, maintaining an orderly (trend shaping) sequence of higher highs and higher lows.

The Gold to Miner Ratio (click to enlarge)

The Complete Coverage Report offers two subscriptions—$9.95/month and $100/year. It is well worth the information received.

Darah

www.thecompletecoveragereport.blogspot.com

THE INFLECTION POINT OF 2013!

Most are sunk in contemplation, and hopelessly clinging on to the ever- changing era of big government spending.

Central bankers and big financial institutions are borrowing money from the FED at rates near zero, and then reinvest it into the ten year or thirty year notes, which are paying 2% to 4%. From the standpoint of any financial institution, it is logical and also more profitable than say, lending to a risky borrower.

Quantitative Easing was- and is now-the Fed’s response to this credit crunch, BUT!- with money being created out of thin air! And this new infusion of liquidity will inevitably flow back to the same institutions that initially purchased these long term government debt instruments! Overall, the hopeful consequence is to saturate the debt market and encourage creditors to invest elsewhere-- i.e. business owners, entrepreneurs, and the everyday consumers.

Bond prices and their corresponding yields have an inverse correlation. If prices rise, then yields will fall. When the FED intervenes it creates the illusion of demand, making prices go up. In theory, their intent, is for bond holders to cash out with a profit, then consider loaning really-where there is MORE RISK.

Interestingly enough, this theory is only a theory, not a solution. When the government increases spending through measures of stimulus plans, the budget deficit will soar. This debt, however, must be repaid and consequently, higher taxes will largely fall on the wealthy, but also on the middle class because most, if not all will receive reduced payouts. Higher taxes will also cut back consumer spending, forcing companies to operate with fewer employees. The result is higher productivity because one worker is doing the job of two, or three in the extreme.

This all will come at a time of rising inflation because despite the Fed’s efforts to keep rates (yields) low, their plan is failing. International creditors are quietly fleeing from bonds because of fears of a possible default. They will focus internally on the growth of their domestic economy. Bond holders will take their bread and butter back to their homeland to focus on the very products that create organic growth and exports for all.  

Mind you, the technical picture must accommodate this inevitable outcome. And as we all watch from a far, the bond market is cracking, but has not imploded, at least not yet. I suspect that this sideways bearish pattern will ultimately give way in the early part of 2013, and at the same time initiate its Bear Market in full effect.

TLT- Weekly Chart (click to enlarge)

We have a major turning point approaching in all markets, not just bonds. The corresponding cycles for stocks and Gold, both long and short, will manifest into a decouple process that- I have long maintained!

Investors should be prepared for the coming tax hikes and rising long term capital gains, which together hold little to no incentive for owning stocks. This will be the true culprit for a worsening stock market, actually a Bear Market; while the media misdirects you with political theater to alleviate the worries of going off the fiscal cliff.

S&P 500- Daily Chart (click to enlarge)

As for the Dow Jones, it too doesn’t look very promising either.
 

The Dow Jones- Daily Chart (click to enlarge)

 

But there will come a time, a time long before the Fed downsizes its balance sheet, if unemployment ever reaches 6.5%. A time far removed from improving GDP or the presumption of an economic recovery. A time when bearish conditions seem extended indefinitely and there is no end in sight! In the same breath investors will rush out of bonds and enter the only non-government asset that in the times of pervasive gloom outperforms any other market---GOLD!

Gold- Daily Chart (click to enlarge)

The CC Report offers two subscriptions— $9.95/month or $100/year. It is well worth the information received.

Darah

 

 

 

 

MINERS AT A LOW!!

The history of the stock market reveals how specific patterns come into being, and how it influences subsequent behavior. Pattern sequences of a previous time are reborn and under the right circumstances, can identically repeat. It is simply a reproduction of how investors are behaving collectively at two different points in time. But knowing that a pattern has a particular script it follows can constitute a path that holds (or leads to) a likely outcome!

Ninety percent of the time all market declines will have two panics. The first is associated with volume and volatility, invoking maximum participation. The second is a byproduct of the first and unfolds in a final ‘flush out.’ It is less dramatic in size and influence- but prices reach new lows.

Time is also a component and is equally as important. Once a protracted decline sets in, historically there is not a typical short squeeze of five to eight percent in the other direction, but a tremendous upward spike which reverses the trend all together.

The modern day scenario that is most fitting is of course, the GOLD MINING INDEX. And after an extended three month correction, we can officially say "the rubber band has been stretched!" The technical picture provides enough evidence to define a clear cut two- panic low sequence, but more interestingly, the second panic has a particularly complex nature that morphed into a sideways and seemingly base pattern. This now calls for a violent uptrend underway!

GDX-Daily Chart (click to enlarge)

The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

Darah

PANIC COMING!

The TV pundits all contribute their fair share to the conditioning process by clouding thoughts of any market player. To the extent that all ambiguities presented will bait investors to thinking IRRATIONALLY! Like, waiting for a 1000 point rally to emerge once the fiscal cliff is resolved.

Fortunately, underneath all the headlines a visual and graphical interpretation can be mathematically extracted. It is here, in these very charts, where you will find an answer that illustrates what is really going on, so that us technicians can observe, scrutinize, and formulate a particular bias.

The information provided does not tell you why, or when, but what!

In this case, ‘the what’ is a bear market rally. These particular rallies are very sneaky and most convincing, but can be properly identified when using the right tools.

For starters, a basket of heavily weighted companies, ‘THE NIFTY FIFTY,’ which offer the bulk in the performance in the averages -all now have chart patterns that cannot sustain the continuation of this advance. Invariably, when volume remains light during an extended window of time, the result is an inevitable sharp collapse back down to the previous lows or worse, new lows that can no longer support a bull market.

The S&P 500 index is a case in point, which is still in rally mode, and perhaps can continue higher if there is further consolidation. But if only mother market is ever so accommodative to our own expectations.

And it is because of her complexities that make it an impossible arena for perfection. The current rally back is clearly overworking itself to recapture the previous drop in November and rather than guessing where exactly it will end, think of it in terms of direction. The future course of these violent counter trends ultimately end in a scare plunge; and all the pumping in the world cannot uphold the violent cascade of selling pressure that will implode on the masses.

Consider the technical chart below, which projects a disaster waiting to happen, and with only a small chance of one last leg higher before this rally is all said and done.

S&P 500- Daily Chart

 

The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

Darah

OVERSOLD RALLY COMING!

The ever changing nature of the stock market will often boggle analysts if the current price information displays an unclear message. There has always been, and there will always be a fascination to wrongfully challenge what the future holds, instead of interpreting what’s at hand.  It’s as if what is already known is simply not enough.

Such aspects should never be the primary tool of one’s own decision making. In fact, this is very reminiscent of my encounter with one wise expert on Wall Street. He is a seasoned grizzly who has weathered decades of all different market climates and his ever influencing demeanor once expressed to me, “Don’t tell the market... let the market tell us!”

Many have already come forth with bottom expectations, but none hold any convincing basis for this belief. With regard to the averages, the message across the board is simply no message at all. The only, if any, ‘take away’ from this most recent emotionally inspired wave of selling has served as an oversold condition. No reversal has transpired to even consider a change of events.

BUT, the last thirty minutes into Friday’s close did reveal a heavy interest of buying for reasons we will soon find out next week. Any follow through of this will result in a swing low, but I must caution those who feel this may in fact be the more important bottom. Let me explain.

Even in the perverse of markets, rarely do stocks ever go down and then turn back up to form a ‘v-bottom.’ These particular bottoms are suspect and almost all fail. A true bottom worthy condition must present a subsequent retest of the low or in the very least, find support near the general area to confirm that prices can hold despite all of the bearish news.

Bottom Line:

After a second low is presented, odds increase tremendously for an oversold rally into year end. Leading into the second low, divergences will erect on all fronts and most of the selling pressure should be ‘wrung’ out. Below is several examples to further underscore this very sequence.

NDX 100- Daily Chart

 



In case Friday was not a low of some kind, a bottom will soon be realized in the coming days.



 

The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

Darah



A Free Lunch!

Click on the link below to preview a sample of the Nov.5th Premium Newsletter.

11.05.2012- Sample Newsletter


For a more comprehensive analysis on the markets, please go to the Premium newsletter tab and subscribe today.

Darah

A SECOND CHANCE FOR ALL GOLD INVESTORS!

Not long ago, in the article entitled, “The Final Run in Gold,” I outlined a sequence of specific events that called for an imminent correction in Gold. Contrary to this viewpoint, the pervasive narrative among analysts at that time was forecasting the metal price to reach as high as $2,000 an ounce. Of course, this expectation never came into fruition, nor was it rational enough to give any credence either.

For those of you who are owed back the explosive rally in September NOW get a second chance. Prices are in their final days of this current decline, and will present buyers with one extraordinary opportunity. My target between 1850 and 1900 I see can be realized in the coming 4-6 weeks, likely leading into mid December. All it will take is a one day stroke higher of 20 to 25 points that initiates the reversal, and which generates an avalanche of buy orders thereafter.

As you all know, psychology in the commodity markets is driven by the element of FEAR, but this time it will be BULLISH PANIC. The truth of the matter is that Gold is in a roaring new bull market. And these hyper-sold conditions trap investors because they are emotionally forced to sell their positions at the very wrong time. Bottom fishing to this degree where valuations are extremely suppressed is not an occasion that comes very often.

The canvas below you will see I’ve ‘inked’ with my long expectation of the price action in the yellow metal. Don’t get left behind as the train is not far from leaving the station.

The CC Report premium newsletter is a daily update for subscribers. One can join this particular service for only $9.95/month or $100/year. It is well worth the information received.

Darah

GOLD AND MINERS ARE APPROACHING BOTTOM!

Large concentrated amounts of volume will appear during the intial stages of an uptrend, which is a telling sign of forthcoming strength. It is a direct result of INSTITUTIONS that accumulate massive long positions at the start of a major move. But as time 'takes a toll' on the maturation of the bullish advance, its trend grows weaker on diminishing amounts of volume even when the stock is making new price highs. The interpretation is that investors are losing interest, and a top is near.

Likewise, in the case of a downtrend, new price lows on declining volume indicates that buyers are ‘eating up’ the supply, and the trend is ready to reverse. There are even occasions where the reversal transpires as a ‘volume spike’, but you see very little price movement.  The message is that the extremity of selling pressure within the move lower has reached a point of exhaustion.

Based on the corresponding characteristics exhibiting in both Gold and the Miners, there is overwhelming evidence that supports their current down trending structure to be coming to an end. Let me explain.

 

The yellow metal has now entered the accumulation phase, where big firms initiate a ‘scale in’ approach to purchase blocks of millions of shares over a designated time frame. Since legally they cannot buy the entire shares float all at once, this strategy is widely used and seemingly more appropriate. Furthermore, the lack of selling participation associated with Gold’s most recent price decline, on top of the new money inflow, suggests that buying is in effect.

 

If this methodology happens to 'stretch' the actual turning point as sometimes is the case, my guess is that by the next 5- 8 trading days a bottom should present itself. Rarely do you see a correction last more than three, three and half weeks especially in the birth of a major uptrend.

 



 

Particularly when an index is so closely linked to the metal it tracks, yet is sensitive to the price performance of the overall market, its true direction can be skewed by such 'pulling' forces. Despite a 200 point drop in the DOW JONES Average on Friday (a mild re-enactment of the 25th year anniversary of Black Monday), and gold moving lower- the GDX actually closed positive on rather large ‘spike volume.’ This is a clear case of Investors that have seemingly found attractive valuations at current levels for reasons obvious - they are expecting a bottom.  

 

 

The CC Report premium newsletter offers two subscriptions-$10/month or only $100/year. It is well worth the information you receive.

Darah

 

A YEAR-END RALLY IS SOON UNDERWAY!

The integrity of a particular resistance level at which prices breakout from is only called into question if the subsequent retest lacks the ability to ‘hold’ above the breakout point. Failure to do so would be a sign of trouble that requires more effort among buyers to ‘absorb’ the oversupply of shares at hand. However, the fact that market fluctuations can be irrational at times; there are cases when the breakout level is not necessarily the fulcrum point. Instead prices have room to ‘give’ but still remain above the general stopping area. This can be equally as valid so long as there comes a period of consolidation 'above' where buyers can defend the newly established higher level of support .



For this technical reason one might objectively identify as their being a potential bullish case in stocks right now. And should this analysis be applied to the basis that 'the fundamentals always find a way to fulfill the technicals,' then it gives even more reason to ‘dig’ into what might be the primary driver.

For starters, price action during the month of September was largely ignited by investors’ response to the stimulus measures of our Federal Reserve. Not only was there a great deal of ‘front running’ the announcement of QE3, but as it turns out, the actual announcement was a ‘sell on the news’ type of event.

Since the market has not ‘taken off’ as it seemingly should by now, there is somewhat of a dismissive approach among investors- as if money printing this time around may not ‘work’. Historical evidence would prove that monetary stimulus during the latter stages of a bull market cycle has less desirable effects, but for reasons explained in the premium newsletter- I believe there is STILL enough 'kick' in this market to accomodate a year-end/election rally prior to a major TOP.



The premium newsletter offers a variety of information on all asset classes of the stock market, including low risk/high probability strategies. Subscriptions are either $9.95/month or $100/year. It is well worth the information received.

Darah