Tuesday, June 16, 2009

The Steps and early signals on Commodity Lead pull-back or crash

The Steps and early signals on Commodity Lead pull-back or crash, here is what we should learn from today's decisive pull back (20 points) June 15,2009

(1) Today's commodity move was signaled 3 days back (last Thursday) when gold dropped hard and broke trendline. This is early signal that commodities were in trouble. If we realize that, we should have shorted/put all commodities! From OIH, to POT, From GDX to FCX, OIL/Metal/Ag/Steel/Coal, etc, etc. If not Thursday, then Friday was the last chance to load commodity shorts/puts. I now believe last Friday was big Boys unload day, while they held OIL price steady.

(2) The second signal was TLT was not doing down after 30 yr bond auction. This means USD is hit the bottom (this one I did catch it and repeated saying I believe USD is going to bounce after bond auction) .

(3) The third, I also got this one: the low volume! it is now getting clear and clear that Fed Ben is pulling $ out of mkt that causing the liquidation drain. That means he will not pump stocks till get yields ($TNX) back to low 3's (now 37.13)

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