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It’s no secret that I think we’re due a substantial pullback off this 23-week Lorne Green’s Bonanza move we’ve had here, and I’m thinking it will probably come this week, if it’s going to come before the 2010 sell-off my colleague Mssr. le Fly has bruted recently.
One faithful guide I’ve used here many times to plot my course is the trusty Dow Transports [[TRAN]] of Charles Dow’s Theory fame. On the following weekly chart, you can see they are approaching an important Fibonacci level — the 61.8% Golden Ratio line, the strongest of the fibonacci levels in my experience:
Note that we are only one short thrust, a cut-purse’s dirk, as it were, from that magic level, at right around $4,215 on the index. In fact, if we have another day like we had today on the Trannies, we will get there tomorrow. This will be key an indicator for me as to whether to cover my hedges, or press them further.
For those of you looking for a solid play for après ski-jump, you know already I’m a strong proponent of game changing technology. I think Cree, Inc. [[CREE]] owns it, and will be the leader in LED technology as it advances to light our world on only a fraction of the energy and cost of traditional incandescents.
All without K-cups.
It doesn’t hurt that CREE’s chart is nothing short of a monster, which indicates people far smarter than me are ready to finally back this innovative company after a long period of gestation. Lookee here at this weekly trend:
You will note above that I believe this slightly overstretched beauty should get a pullback into the $47.50-ish range. It’s a strong buy — with two fists — there, I’d argue.
Best to you all, tomorrow.
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1120 is powerful resistance but it doesn’t mean it won’t be toppled. As The Fly mentioned today, seasonality is very strong here. I’m sticking with the uptrend until proven otherwise.
As Danny pointed out in his video, we are on our 4th up day so some kind of down day is likely tomorrow but I will be buying the dip.
Love your CREE pick, I will keep an eye on 47.50
I guess we will see, but nothing goes straight up fo’evah.
Not even gold.
Watch the trannies, and watch the dollah.
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That 5th wave up on the trannys could end up being as big as the 1st leg … a pullback may be temporary.
If you like CREE, you’re gonna love my nuts and AIXG and VECO.
Been a fan of VECO since 17 …
week closing higher has historical precedence.
http://quantifiableedges.blogspot.com/2009/12/most-wonderful-tiiiiime-of-yearrrrrrr.html
Ironically, the only solar I own is JASO, and that’s from an old RC recommendation from months back.
Sometimes better to be lucky (or forgetful?) than good.
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DXY is breaking out over the short term fib of 78.6% at $76.77.
DXY will be officially “BTFO” on a break of $77.47.
I do not think we will get there today, unless Greece collapses or some such inanity.
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DXY now approaching $77 for the second time today.
Popping corn….
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Jake, the market is stubbornly unfazed as DXY has rallied about $3 off it lows over the last 3 weeks or so. It is behaving a lot like Gold was through early December as people try to squeeze out the last few dollars of this rally before some sort of inevitable correction takes place.
Obviously you were looking for a quick pullback re: your Jan put purchases. What is the point you cry uncle on this thing or are you simply going to keep adding or roll those out a month or two? The holiday spirit is a stubborn one at this point….
I’ll give it to the end of this week, probably, as we have quadruple witching and all manner of chicanery is afoot. But today should be indicative.
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BREAKING NEWS from Greece:
The Greek government announced that they “threw some olive oil” on their financial crisis and magically, it has gone away. Yet another miracle performed by olive oil.
“Chrism” as it were.
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XRA seems to be zagging while others zig.
Yes, wondering if there’s an M&A connection here, or if it’s just catching up.
Have not added to my original 4k, fwiw.
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Same with ETQ … wondering myself if they found a buyer before I got some
No, they are just following “the First Law of Jake” which is :
Any gold or silver miner, no matter how crappy their prior performance, will go up as soon as Jake sells the last of his position.
Remember how I told you all never to sell out of “everything,” on a PM play?
Well, I didn’t follow my own advice on JUST THIS ONE position.
Uncanny, idn’t it?
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LOL @ fly
Thanks for doing what you do Jake.
I follow the both of you closely.
I follow so many indexes..
Maybe I should stop and just follow the santelli boner index?
christ on a cracker.
Jakey – regarding TBT you said “Very close to BTFO today… over $49.20 and our interest rate problem will be confirmed.”
Interest rate problem? Please explain when you have a sec.
Things are unraveling… moo hoo hahahahahahahaa!
Refinance now if you are thinking of it. I have a little bro that can take care of it for you… 😉
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BTW, Moobsie, don’t confuse the hoi polloi. I said that ON THE PPT. Not here.
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No debt to refinance!
With a diving dollar, no better time to accumulate some!
Borrow high, (buy PM’s, maybe?) repay loooow….
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TIM’s a believer now:
Precious Metals – I have been a doubting Thomas on this the entire time, and I was wrong. The frantic creation of fiat currency by the Fed has been a godsend for precious metals fans. I cringe at the fact I sold my bullion a year ago, buying into the EWI notion of a plunging gold market. I am planning to be a proud member of the gold bandwagon.
Dear Gawd, nooooooooooooo!!!
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(please tell me he was being sarcastic?)
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No fucking way
It’s part of this article about what he’s learned in 2009. If you look at his twitter account, it’s the second tweet from the top. It also says he did ok in 2009 so I know it’s legit.
This confirms that the Fly is right and gold needs to be shorted in 2010
Nah, he’s as fickle as a 13 year old girl subscribing to Teen Beat.
He’ll flippe-floppe right back to Sean Cassidy in no time.
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Like, from Leif Garrett?
Scott Baio.
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Just want to confirm, as the pronouns get tossed rather easily, we are talking about Timmah, not le Fly.
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