Friday, October 16, 2009

Market Update 10-16-09; Still think top is soon.

I continue to think the top is very close. There are now numerous technical signals that lead me to this. For one, there is a possible 5 wave move in its final gasp. Also, volume continues to be weak. Divergences are all still very strong. And, all the markets are still in typical retrace area. See the chart below and compare to the former post Market Update 8-31-2009. Not much has changed as far as technical signals when looking at the two charts.

It will be interesting to see if the Dow closes above 10K today, my guess is yes. I may put a small put on the market at the close just for fun.

On another note Gold and the US Dollar also look to be at potential turning points. I heard on CNBC today that Tiffanies is going to be selling gold bricks, and Pisani said "looks to be the top in gold", which I agree with. There are other reasons to think gold is close to topping as well. The reason I mention the Dollar and Gold is that all these markets are interconnected and should all turn around the same time.

Good Luck

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