Wednesday, May 11, 2011

5/11 2:15

Holding onto a $4 silver short gain in  Looking for a low in the 32.20 area as it comes down to 142-day M/A.

In the stock market I hold the following:
The triangle that developed in stock index futures last Thursday resolved to the upside but completes the upward abc correction, which should lead to new lows.  I'm not relying on I1 raw data for pinpoint accuracy since the lead developed.  Instead I'm looking longer, especially at the 30-day I1 which peaked and is now in slowly accelerating decline for months.  I am looking for support at SPX 1320.
At SPX 1320 I'll liquidate 75% of my shorts, leaving 1 of the mutual funds.

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