Tuesday, June 21, 2011

Please, Please...try to pretend its anything but a short squeeze...

I will post some charts in addition to this commentary. My systems took new shorts today near the close. The reality is that this is a short squeeze and in no way changes my comments from the weekend. I have been travelling and its a challenge to put up charts...but the setup remains and I expect it to be triggered by the dollar. On Sunday, I posted that I thought it may take one to maximum a few days for the dollar to reverse...well tomorrow I will likely get the reversal signal that I look for at major turning points. I have posted each one as they happened with the dollar and each has been accurate nearly to the day...there is a possibility that the signal may not trigger tomorrow but its not very high at this point therefore, we added a lot of dollar contracts today near the lows (and euro shorts)...and I expect that we will be seeing the dollar taking out the 76ish highs very soon. Oil looks terrible...about time for Goldman to come out with another "Buy" reiteration. Silver is completing its bear flag while the EURO is ending its countertrend bounce in preparation for a 3 of 3 impulse pattern down. The markets are indeed in a precarious place and likely to face a sharp reversal at any moment that could trigger a waterfall decline. Longs - well, they will be dangerous but exciting if you like that type of thing.
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