Monday, January 31, 2011


It seems the end of the month/first of the month bullish bias may be enough to hold the markets up for a couple of more days.  Beyond that and we would have to begin to doubt that a correction is really underway.  However, if the Qs come under today's low of 55.39 then the correction will be confirmed.  I would really like to see a move below the December 31 low of 54.21 as there was a gap up on January 3.  The first of February is notorious for reversals so tomorrow could be it.

Oil continued its surge higher today.  I think we will see the 95 to 96 target zone hit at least if not the 105 to 107 zone.  Gold and silver really did not participate in the rally with oil today, and it is likely the correction in precious metals will continue even as oil moves higher.

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