Gold (GLD) continues up -- no reason to get out of that long.
Oil (USO) gave us another long entry this week -- this was a "with trend" trade, for those who are following along.
On IWM and QQQQ -- traders following our Aggressive Mechanical Method (based on signals from Rodo) took profits on their longs this week and reversed to short. We warned clients, however, of the possibility that the U.S. equity indices would merely go down to touch moving average support and bounce back up -- which is exactly what they did.
All of the major U.S. equity indices we follow have filled their 2/27 gaps. NYA (the New York Stock Exchange index) has gone up to make a new all-time high. The economic problems that currently confront the United States are well known, and discussed thoroughly elsewhere. There is every reason for our stock markets to fall, except one: "There is too much cheap money floating around." With speculative money no longer going into housing, it needs to find a home somewhere, and it seems stocks are the place to be. Will the equity markets be the next bubble? Our "canary" sectors - banks, brokers, and housing - continue to lag the broad-based indices, with the housing index ($HGX) and the bank index ($BKX) still below their 200 day moving average. With the "canaries" so weak, we cannot be enthusiastic about the prospects for our markets, but we are not in the business of making predictions. The "bears" who warned about the Nasdaq bubble beginning in 1997 or so, were eventually proven correct, but they missed a great party !
