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Nearing a Top - Take Gains on Trades Early: The week ahead - July 12-16 2010 Print E-mail
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Weekly Forecast
Sunday, 11 July 2010 00:00

buysell2This last week the markets bounced and although they have gone higher than we originally thought they would, they did it on very low volume.

It looks like they can continue higher but we believe they are very close to topping out. The charts have not given any signs that they are ready to roll over so we will be looking to the long side this week, but we will be booking gains early and will likely close out all long positions by Friday.

We are bearish and do not believe this move will get any legs but it is a short cover rally and we do not fight the tape. We will switch to the short side as soon as the charts tell us to do so. Conservative traders are best off staying in cash and sitting on their hands until this move plays out. If this is the beginning of a new bullish trend there will be plenty of time to get in on the trend once it is established.

Gold bounced but closed just under resistance and is more likely to go down than it is up at this point. We are still looking for a test of the 114 area before we look to the long side.

The U.S. Dollar came down all week but bounced right on the up trend support line on Friday. It is over sold now so a bounce this week is likely.


clickforcharts


 

The Nasdaq Composite Index

COMPQX11


Standard and Poors SP-500 index

spx11

The Dow Jones Industrial Averages Index

dj3011

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GOLD - via the GLD

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The US Dollar (Dollar Index )

dxyo11
 

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