Monday, April 26, 2010

4/26 pre-open

Silver is not a short until 5/17 according to it's forward gauge.

 
Will short silver on the intersection of the above forward gauge and the I1.  When they are both declining then I will short.  Otherwise I will stay out.                                                                                             

Crude is not a short until August:
Crude has rallied with the stock market in the past couple of years.  I believe that the stock market will put a cap on the crude rally implied in the above chart.  Thus, crude is not a long trade either.

Critical support will be broken at 10,970 DJI:

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