Thursday, January 13, 2011

Grinding Higher

Nothing has changed.  The Qs still appear to be in an ending diagonal.  I would not be surprised to see a gap higher followed by a reversal or a gap down and sell off.  If this is a 3rd of a 3rd wave as some propose, then the bears are about to be screwed big time as the ending diagonal becomes a leading diagonal or some other pattern as the market explodes higher, but I really doubt such a scenario will occur.

Silver is rolling over and it will probably lead the commodities to the downside.  Oil has lagged and will probably continue higher for a few more weeks before it tops out.  The Dollar looks to be near the end of a 2nd wave correction.  The sideways action in the Dollar is what has allowed the stock market to grind higher, but when the next wave up begins it should spell the end for the stock rally.

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