Rags to Riches

[BUDDIEE18]

what about tomorrow ?? [got these from Gold-Eagle forum -- thought worth perusing through ]

What About Tomorrow???
(Mr.Copper) Feb 07, 15:49

I need to know direction of Copper Gold Platinum Silver and rare earths.



The inimitable market guru opines on what looms
(ORACLE) Feb 07, 15:42

A possible bear Fractal on the Dow Index

If this week the Dow breaks down below the bearish rising wedge, it may be replicating a fractal that occurred from May-June 2010, when the index subsequently plummeted 14%.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=1&mn=5&dy=0&id=p25136488609&a=210110546&listNum=-2

Watch MACD and RSI as they look for a bottoming.

In this event the Dow might fall to about 10,300 in a relatively short period.




Are Bonds forecasting a stock market CORRECTION
(DrDoolittle) Feb 07, 15:39

In 1987 the peak in T-bonds was a leading indicator to the stocks' peak by five months later. The Dow's subsequent decline was -37%:

http://stockcharts.com/h-sc/ui?s=$USB&p=D&st=1986-01-01&en=1988-01-01&id=p60047078767

FAST FORWARD TO TODAY:

T-bonds peaked at 137, exactly five months ago. Since then T-bonds slid to 119, while the Dow has risen from 9900 to 12000 (similar to what it did in 1987).

http://stockcharts.com/h-sc/ui?s=$USB&p=D&yr=0&mn=8&dy=0&id=p39711666036


We all know market history does NOT always repeat. However, it often rhymes…ie going forward bonds and stocks may perform better or even worse than in 1987.

BTW, an interesting trivia note is the fact the Dow plunged 23% in a single day on BLACK FRIDAY.

Black Monday refers to Monday, 19 October 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%) --- in just one day!

Needless to say, we need to keep our eyes on the bond market, which may again serve as a barometer for Wall Street stocks.

http://stockcharts.com/h-sc/ui?s=$USB&p=D&yr=0&mn=8&dy=0&id=p55591370564


I wrote the following article in May 2007:
"20 Years Ago (April 1987) Bonds Began To Tank"

http://www.gold-eagle.com/editorials_05/drdoolittle052707.html

It is perinent and relevant to what is happening today in the bond and stock markets.

Objective critiques of my last two posts are invited.





Must reads by all gold bulls
(vronsky) Feb 07, 15:25

Singapore gold storage offered to risk-adverse rich

http://biz.thestar.com.my/news/story.asp?file=/2011/2/5/business/7972822&sec=business

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Gold and Silver Gain on Catastrophic” Implications for U.S. Economy if $14.3 Trillion Debt Ceiling Not Raise

http://marketoracle.co.uk/Article26079.html?


----------------------------

Where is Major Support for Gold?

http://finance.yahoo.com/news/Where-is-Major-Support-for-etfguide-483028560.html?x=0&.v=1




S&P500: Negative Divergence spells possible C-O-R-R-E-C-T-I-O-N
(LoneRanger) Feb 07, 15:22

http://stockcharts.com/h-sc/ui?s=$SPX&p=30&yr=2&mn=5&dy=0&id=p45191360518&a=182626210&listNum=-2

Ditto even more with the RUSSELL 2000 Index

http://stockcharts.com/h-sc/ui?s=$RUT&p=30&yr=2&mn=5&dy=0&id=p88666590112





The first signs of 'cracks' in Wall Street?
(chucho) Feb 07, 15:17

Dow Jones TRANS Index:
Could this be the beginning of consolidation in stocks?

http://stockcharts.com/h-sc/ui?s=$TRAN&p=D&yr=3&mn=2&dy=0&id=p59005338389&a=221770517&listNum=1

Moreover, some TA books suggest the Tranie Index is a leading indicator to action of DOW stocks. Below is a chart of the TRANS/DOW ratio. To clearly demonstrate the precarious TA of stocks, I show only the 50 dma of the ratio. Notice how the 50 dma has formed a menacing Double Top (first in Oct 2008 and again this month).

http://stockcharts.com/h-sc/ui?s=$TRAN:$INDU&p=D&yr=3&mn=8&dy=0&id=p21024811727

Now take a peek at far Dow stocks plummeted from Oct2008 to March2009:

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=3&mn=8&dy=0&id=p62692269485

Effectively, the DOW plunged -40% in only 6 weeks (from 11000 to 6500).

The Double Top in the ratio's 50 dma does NOT mean with 100% certainty that the DOW will plunge again. However, it is indeed a warning red flag to be extra watchful for stock weakness - at least and until the 50 dma makes a new high - ie above the Oct2008 top.


More 'cracks' in Wall Street:

Breakout just occurred in the S&P500 Volatility Index (VXO)

S&P500 Volatility Index (VXO) shows a Falling Wedge

This pattern is an ill omen for the stock market in the short term -- and since VXO breakout is UPWARD, it is signaling the beginning of a sell-off in stocks in general.

BO has not yet occurred, but BEARS WATCHING...LITERALLY

http://stockcharts.com/h-sc/ui?s=$VXO&p=W&yr=3&mn=5&dy=0&id=p39413005339&a=221838979&listNum=-2

Past Upward BOs of VXO:

- In Sept/Oct 2008 VXO spiked upward, while the S&P500 plummeted 50% in the 6 months interim

- In Sept/Oct 2010 VXO spiked upward, while the S&P500 plummeted 18% in the 2 months interim

The average decline in each case was about -9% per month
Take a gander:

http://stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=3&mn=5&dy=0&id=p94843306988

Since stocks have risen uninterrupted during 6 straight months, it is only reasonable to expect a consolidation in the near term. Based on the 2 previous VXO BOs, the S&P500 might soon see a drop of at least 9% during a 4 week period from day BO actually happens. But In IMO this would only be a short term setback in the evolving secular bull market in stocks - as I am firmly convinced the S&P500 and Dow will forge new all-time highs before y/e 2011 -- as many Fundamental factors support this bullish longer term forecast