As I've been expecting for a few days now, thirty year treasuries have now broken down through the strong rising support trendline that has supported the strong bond rally since the beginning of April:

More surprisingly, gold is threatening the lower trendline of the rising channel that has contained gold's rise for almost two years now. That trendline looks likely to break, but gold has hit an important support level, and has at least paused there for the moment:

I've been expecting the rising support trendline on long treasuries to break, and it is one of the last of the directional indicators that I watch to concede and turn green. We had a Dow Theory buy signal on Monday as well of course, and all I'm really still waiting for to complete the bullish picture is for the 13 34 EMAs on the SPX weekly to recross to change that bearish cross signal into a strong bullish cross signal.  

In the short term though, we may have seen an interim top on equities. ES broke down from the rising wedge of recent days yesterday and I've been watching to see if the rising wedge would turn out to be a diagonal slice of a previously unrevealed rising channel. The lower trendline of that theoretical rising channel was hit overnight and has held so far. If we see a break below 1108 ES today, then the rising wedge target is 1084.5 ES:

$NYMO has hit a overbought level that often precedes an equities retracement, which backs up the idea that SPX may have hit a short term peak here. The signals are mixed though, and there are some indications that we may need to go a little higher before putting in the next interim top:

July 27, 2010 - UPDATE

NO reason to post a long new post, but I do want to point out that my 1116 /ES I mentioned a few weeks ago hit overnight!  I think that should do it for now and we can do some retracing. 

 We went short U.S steel yesterday in the traders lounge with ANOTHER WINNER!  yeeehaa

I think that we have topped out just for the short term but still feel that another high is coming to maybe 1200 but we will have to evalutate when the retracement  is done 

Hey everyone, 

I just want to let you know i appreciate everyone's support about Lucky (my 15 YO rescue pup) He has a mass that cannot be operated on but is comfortable and still eating, so as long as he is eating and able to due mandatory functions I will not put him down because I have to deal with the seizures and carry him to go out (he is blind) and yes allot of meds but I love him and that's what you do ;-)

On to the markets I have a short term bearish view (this week) some retracement will happen, (everyone is so bullish now) you know that makes me suspect, but I am leaning that way too I need to see if the spx can break through the 200 day moving average. It has broken above the 50 day, and the MACD histogram has edged over the 0 line......but I know MS Market likes to fool the most folks possible, so we may get a surprise.  The volume is so light, the high frequency traders are pushing it around to their pleasure, so trade lightly and in small positions.

I like to play earnings as most folks know and the reason is because of the movement and we had two huge winners last week again in the traders lounge so I did videos on NFLX and AMZM. We have more coming up this week, but some of my favs have been out. Apple, Google, Bidu, Rimm, Amzn. ;-) So this earning season I am about 95% and made as much as 800% on Google and at the very least we doubled our investment on everyone ;-)

So enjoy and again this week will be very light volume so trade carefully!! 

peace love and blessings!

 Anna