MMCLUB

[denmo83]

I'm back in my favorite gold fund, SGLDX as of today's close. I'm going by the rules with this one. The denmo6/gold on the HUI goldbugs triggered the official buy signal.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID345695

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I find it interesting that the leaders in the markets are getting creamed, yet the market is still going up without strength behind the move as measured by the negative divergence in the MACD as well as the rest of the indicators.

Take a look at the following charts of GE, 11% off it's recent high and IBM, more than 6% lower than yesterday's high. Note the negative divergence on the IBM chart :

http://stockcharts.com/def/servlet/SC.web?c=GE,uu[h,a]daclyiay[db][pc13!c50!f][vc60][iUa12,26,9!Lp14...

http://stockcharts.com/def/servlet/SC.web?c=ibm,uu[h,a]daclyiay[db][pc13!c50!f][vc60][iUa12,26,9!Lp1...

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EBAY was taken to the woodshed in the after-hours session today. Whatever they said in their earnings report after the bell was enough to drop the stock more than 6% in addition to the 7% it already lost since last Thursday. This will not bode well for the internet sector tomorrow:

http://stockcharts.com/def/servlet/SC.web?c=ebay,uu[h,a]daclyiay[db][pc13!c50!f][vc60][iUa12,26,9!Lp...

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While I fully understand that my denmo6 on the S&P500 has been on the buy signal since Oct.6th at SPX 1034, some 16 points ago, I remain in capital preservation mode due to the negative divergence in the markets. I still do not feel this is a good time for me to be in the markets, therefore I remain in cash.