One More Push Up
After being down on Friday over 300 points, the Dow jones industrial average closed up 138 points. The markets are extremely oversold on the daily charts. I think we get one more push up and I think the markets are on borrowed time. As I have been saying that this is not a time to be complacent! I would look to lighten up and be in cash and look for the gaps that are on the down side to be filled before I renter the markets. Oil closed up 38 cents and looking at the daily charts oil looks like it wants to roll over. Oil needs to close below 46.88 on the daily charts. If that happens we should see new lows in oil. I stated that I was looking for gold to get to the 1225-1230 area where I would look to go short off the daily charts. Gold got to 1223 then collapsed. I am looking for gold to get an oversold bounce where I would wait for the patterns to set up on the daily charts, stocks like NUGT and ABX are stocks that I would look to go short.