Monday, October 15, 2007
Dear Readers, I think everything is possible at this juncture, but scenario I give a preference is the one where the PRESSURE BUY signal generated Thursday is played out into the PRESSURE SELL signal in couple days, which could be like the distribution or little spike days on the upside. Having that said any sharp move lower with lower lows than last week will convince me that we are heading lower for few more days. Bottom Line, grand resistance is just a shouting distance away at 14444 DOW and 2155 NDX and 1577 SPX or so and, frankly, I would rather get it there and having it done. Even so, if our YELLOW BRICK ROAD is correct ( so far that is the case) it could stretch the game into early Nov. $US is calling in commodity currencies? I would be extremely careful here of all commodity currencies AUD/GBP/RUBLE/NZD/CAD etc... I think their days have come and are going away soon. I am less scared of CHF(SWISSY) and EURO on the downside. These EUROPEANS will do better into FEB/MAR 2008 even as day may undergo sudden air pockets. The same story with GOLD. Less so for OIL, that is why I repeat buy all gold and sell all oil , if you must hold inflation protection assets. Interest rates may back up for couple more Weeks, but should go lower into next year as ECO/Markets weaken.