Tuesday, January 25, 2011

1/25 9:35

I bought 2% SSO at 50.20 to bring me back up to 4%.  My stop is ES futures 15-minute M/A minus 3 points, but this is right at a cluster of support so make it 1277.50.

3 comments:

  1. morning, Steve.

    What are your thoughts re crude? Big drop so far from last week's high. Do you see more downside to come?

    I'm trying to figure out the count on the hourly chart, but I'm not seeing an obvious way to label the waves. So far just a series of impulse waves down, broken by sideways move--classic waterfall decline.

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  2. looked at the CL chart again and noticed that on the daily chart this morning crude touched the TL drawn off the lows of 8/25 and 9/23. So a bounce here would be expected. If we break that TL with conviction, more downside lies ahead.

    Carl Futia has been calling for $50 crude for months, and I have a pattern that could resolve into a price that low over the next several weeks/months.

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  3. Steve
    re gold, I think we need one more new low to wash it out either tomorrow or Thursday to set up the relief rally. I've been short gold since new years and made almost 15%. Overall I'm not sure enough damage has been done for a major decline.
    Charles

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