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Re: doghousemine post# 4425

Friday, 10/30/2009 12:51:37 PM

Friday, October 30, 2009 12:51:37 PM

Post# of 12138
dog: Spot on analysis. You right about the financials; island reversal top in the XLF, break below the 50MA, then a pull back to the 50MA and a rejection. RUT looks absolutely horrible; double top, penetration of the 50MA, and absolutely no bounce. This is the area I was looking for price exhaustion back in August; 1050-1100 basis the SPX, so I am thinking this IS the top. Be interesting to see if the Bernanke put is exercised once again.
Still think the central banks are net sellers of gold currently, and still keeping an eye on the VIX; if it gets above 30, the dollar should rally, and give us confirmation of a top in the broader markets.
Treasuries are stronger due to a flight-to-quality, but if the Fed tightens, you could see a positive, instead of a negative correlation to equities.
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