Is It Time for a Breakout?

[Profit Maker]

Is It Time for a Breakout?


By Profit Maker
February 24, 2009

While the Dow Industrials busted to new lows, the S&P 500 retested its low and MAY have formed a Double Bottom, one of the first signs a change in trend (down to up) may be near.
Meanwhile, the NASDAQ has been holding much stronger. While it too has pulled back, it hasn’t done so near as much as the other indexes. But then again, the NASDAQ doesn’t have the toxic waste the other two indexes have either. Also, the NASDAQ has formed another bullish pullback off highs pattern (POH) as shown below:

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Finally, the secret to making options pay — with much less risk and much less work — has just been revealed...for anybody who’s finally ready to get started...
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But What About Gold?
About the time you hear everyone on TV pounding the table on gold and you start to hear the words: Safe Haven Buying for days on end you know you’re near the end of the run. Why? Its emotional money saying “UH OH — the sky really is falling, I gotta get some of this” (AFTER The fact of course).
This tells us we are near a stall point. There is an old adage that has served us technicians well over the years and that is:
“More often than not when everyone is talking about it, that’s about the time it rolls over...”


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When pros face years of “go-nowhere” markets, here’s what they do...
Even in flat or falling markets, my colleagues and I use this very simple “on-demand income” strategy…
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Don’t follow the herd! We all know what happened to those who followed the conventional Wall Street herd right? They added 7 years to their time horizon window just to get back to where they were in 2007.
While Gold MAY be working its way higher over time, technically it’s overbought and at resistance. While we’re not saying sell it, we are saying expect a pullback. Take a look at the chart below:

Notice how it is bumping up against resistance. Also, notice that the full stohcastics are overbought? Not time to jump on the bandwagon for now.
Just remember the market has a funny way of letting those who have to have it actually have it — in more ways than one, we might add.

Welcome to the world of Profit
Profit Maker

[Ajay.Joglekar]

Is It Time for a Breakout?


By Profit Maker
February 24, 2009

While the Dow Industrials busted to new lows, the S&P 500 retested its low and MAY have formed a Double Bottom, one of the first signs a change in trend (down to up) may be near.
Meanwhile, the NASDAQ has been holding much stronger. While it too has pulled back, it hasn’t done so near as much as the other indexes. But then again, the NASDAQ doesn’t have the toxic waste the other two indexes have either. Also, the NASDAQ has formed another bullish pullback off highs pattern (POH) as shown below:

******************************
Finally, the secret to making options pay — with much less risk and much less work — has just been revealed...for anybody who’s finally ready to get started...
******************************

But What About Gold?
About the time you hear everyone on TV pounding the table on gold and you start to hear the words: Safe Haven Buying for days on end you know you’re near the end of the run. Why? Its emotional money saying “UH OH — the sky really is falling, I gotta get some of this” (AFTER The fact of course).
This tells us we are near a stall point. There is an old adage that has served us technicians well over the years and that is:
“More often than not when everyone is talking about it, that’s about the time it rolls over...”


******************************
When pros face years of “go-nowhere” markets, here’s what they do...
Even in flat or falling markets, my colleagues and I use this very simple “on-demand income” strategy…
******************************



Don’t follow the herd! We all know what happened to those who followed the conventional Wall Street herd right? They added 7 years to their time horizon window just to get back to where they were in 2007.
While Gold MAY be working its way higher over time, technically it’s overbought and at resistance. While we’re not saying sell it, we are saying expect a pullback. Take a look at the chart below:

Notice how it is bumping up against resistance. Also, notice that the full stohcastics are overbought? Not time to jump on the bandwagon for now.
Just remember the market has a funny way of letting those who have to have it actually have it — in more ways than one, we might add.

Welcome to the world of Profit
Profit Maker

But it is also possible that GOLD may shoot up from here. Beyond a close of 1007 Gold does not have any resistance on the upside. Then i think we have only Fibonacci levels to look at.

If you really want to be contrarian then you have to first find out the real reason why Gold is going up. If that sounds unreasonable then you can say that going against Gold is a good contrarian stance. Being contrarian for the sake of contrarian does not make sense.

Contrarian or not following the herd does not mean you blindly go against the herd. Also people who are buying Gold or advocating buying Gold are not quite a "herd" as yet. Far from it. When everyone, meaning even your neighbor starts visintg the jewelry store, then it is truly time to stop buying Gold and sell it.

[ruchin_mittal]

Gold looks Strong but expensive(upside 10-15% above 15000) but Stocks(Equities) have become very cheap.Over a period of 2-3 years Stocks may Outperform Gold
If you are confused :confused:between Gold and Stock Market and couldn't decide which way to go...Buy Shares of Gold miners...:)
During 1987 gold rose only 40 percent while gold shares gained 200 percent. From the fall of 1989 to January 1990, gold shares rose 50 percent while gold gained only about 16 percent.
The explanation lies in the fact that gold shares offer leverage
arising from the fact that mining profits rise more sharply than the price of the gold itself.
For Example :
If it costs a company $200 an ounce to mine gold and gold is trading at $350, the company will reap a profit of $150. If gold rises to $400, it will appreciate in value by only 15 percent ($50/$350), whereas the company's profits will appreciate by 33 percent ($50/$150):)

COPPER AS AN ECONOMIC INDICATOR http://www.snappymaterials.com/images/copper-pic1.jpg
Copper is a key industrial commodity. It's importance is underlined by the fact that it
is included in every major commodity index .

Because copper is used in the automotive, housing and electronics industries,
a lot can be learned about the strength of the economy by studying the strength
of the copper market. During periods of economic strength, demand from the three
industries just cited will keep copper prices firm. When the economy is beginning
to show signs of weakness, demand for copper from these industries will drop off,
resulting in a declining trend in the price of copper.

A strong copper market implies that the economic recovery is still on sound
footing and is a positive influence on the stock market. A falling copper market
implies that an economic slowdown (or recession) may be in progress and is a negative
influence on the stock market.

Commodities usually do best in a high inflation environment which is usually bearish for stocks. A low inflation
environment (when commodities don't do as well) is bullish for stocks.