Monday, August 17, 2009
Well, we ARE off to the races ! ! ! Declines outran advances 5 to 1, fairly decisive.
Mr.Nasty's cousin, Captain NAMO is about to run aground, at which time the rout may halt for a breather. I am NOT counting downside objectives at this point, rather watching and waiting on the weather and the waves and other internal clues as to how the scenario will play out.
True to form with the Liquidity Curve, Gold and Gold Stocks are following it down, like a snowboarder riding a rail, as they start to cling tight to the lower Bollinger Band Border. Do the math yourself and you see that no matter what this is considered, Bear or Bull Market, it has a ways to run and will take a breather or two along the way. For those of you who do such calculations, it makes a fine guessing game, along with "Catch the Falling Knives/Swords/Rocks", and some lucky person will guess the right combo of Fibonacci Numbers, Ellliot Waves and moon phases. Probably the rest who play will get a bit bloodied.........
Meanwhile, Ya'll fight nice, no ear - biting or eye gouging. Remember its all fun and games until someone loses and eye and then its SPORT !!!
Mind your Stops and Take Profit Points.
The Hang Seng, and Nikkei are down 2.5% or more Sunday Night, and liquidity as we know it to be, is in the lead in downward motion. In this case, the above picture is probably worth 10t to 20K words from guru's recapping the action and explaining why their point of view is right.
Bottom line, market is in downward motion. Mr. Nasty says so. Liquidity says so.
SHORT ANSWERS. Basically any questions seem to me, to be handily resolved by observing the Liquidity Curve posted above.
It seems that the trend in uranium stocks is in suspense. The only group that is overp-represented amongst the technical scans is some small copper stocks, but then that is what PEAK PERFORMANCE PICKS is all about. Likely the gold price, and gold stocks will go in direct correlation to the Liquidity Curve, as well as the general stock market. Basically all three are joined at the hip. US Govt Bonds are neither indicating panic or hyperinflation, so we will probably find some normality in a basic correction of the Rally from Mar 9 forward, including the recent rise from July 6. Each one of these moves has contributed significant winners, of 25-50% in 2-4 weeks, which, compared to the general market, is robust. Distribution of the winners were fairly obscure stocks within specific energy and metals groupings.
This weeks picks showed the same pattern. Energy infrastructure, and marginal energy processors and producers placed a few candidates within the current group.
Due to the current downdraft "in-motion", any potential acquisitions, this week, need to be approached conservatively and with discipline.