Steve's Place

[DeepBlue1]

Some other thoughts...

During this whole "wedge building" process on the charts, it occured to me that each time the market rallied the talking heads were saying they thought that the hedgefund redemption selling was probably done.

Then each time it dropped again they'd say it was more hedgefund redemptions.

It appears to me that what's been happening is that the hedgefunds stop selling TEMPORARILY in order to let the market rise and then all of a sudden they start dumping again into the rally.

I also notice that the up days are on LOW VOLUME while the down days are on HUGE VOLUME, which I think validates my theory, AND...the USD chart pattern is slightly different from the others in that in the last 10days or so the pattern is a "descending triangle" with lower highs and basically a flat bottom rather than a wedge with both higher lows and lower highs. This signals to me a weakening in the dollar and seems also to be aiming at or near the 15th next week.

This all makes me think that there could very possibly be another HUGE DIP on next Tuesday or maybe Wednesday, or maybe Monday, Tuesday AND Wednesday of next week since the time for "playing games" before redemptions is now just about gone and they'll HAVE TO HAVE ALL THEY NEED ON HAND for the redemptions coming on the 15th/Next Wednesday.

I've been stopped out at a profit on ALL MY POSITIONS as of yesterday and I plan on keeping all my powder dry until I see what happens on Tues/Weds of next week.

At least at that point we'll have a substantial amount of time before any further redemptions will be forced out of the hedgefunds.

PS: I'll try to read that article this morning, but I have a lot on the table today and I'm also very interested in Obama's statement today. I think he's going to start setting the "tone" for the future starting today, and that'll be as important as any other info we'll have anytime soon.

Finally, I think there'll either be a huge dip next week that will present a BEAUTIFUL buying opportunity, OR...the market will hold right around here THROUGH WEDNESDAY which will signal to me that we really are at the bottom turning point for the general market and "halfway through the recession".

Either way, I'll ALMOST CERTAINLY be buying gold/silver VERY SOON.