Replies to post #31026 on Profunds index and sector trading (PRO)

[Namiar]

<<I think gold is reacting to the government rebuilding NO with no way to pay for it other than printing dollars.>>

As evidenced also by ground gained in foriegn currencies against the dollar

[was Steve]

da boyz cant hold this up forever but they did a fine job of it so far this year. this house of cards will blow over some day and all of the presidents men cant put it back together again (gg).

i too think we get the quarter point raise. there are at least 1-2 more coming after this too

[xe2dy]

G,I agree. "I'm positioned for .25 hike and no change in bias." Both the weekly NASI and NYSI have similar patterns to the Dec 04 and Feb 05 NDX, Mar 05 RUT tops.

So I'm bearish, although I did build a 50% cash position in my trading account Thursday based on the oversold 60 min charts. Friday I used 30% of the cash to add to USPIX and UCPIX.

I would add that PMPIX is a close track of $HUI and I see a 'cup' being formed IF the Nov 05 high of 248 acts as resistance. Looking for the 'handle' to form and a chance to take a position on the pull back.

[chainik]

<I'm positioned for .25 hike and no change in bias>

Which means short everything, including gold? (g)

I am not trying to guess the outcome of the Fed meeting; IMO if the sentiment is optimistic (and this seems to be the case), the market will sell off regardless of the rate hike (or not), change of language etc.

IMO two indicators should be of concern for the bears. First, Rydex traders remain rather pessimistic; second, the last COT report is VERY bullish. Commercials are positioned for a rally, which greatly reduces the chances of a significant sell off.

Shorter-term indicators and seasonal patterns suggest that the Fed decision will be sold. I think this will be followed by another rally, probably to new highs.