Monday, January 3, 2011

Market correction imminent, Gold/Copper correlation and corrections due

Thinned out volumes, insider corporate selling (sell to buy ratio), marked up buys on HFT trading with the trademark grinding on a tight bid/offer spread.

Basically a volume on/off (mostly) overbought market, that will need to correct at some-point (using the Dow as an example).

We can see some panic buying on close (3/01/2011) of trading (volume spike).

Mixed with Gold and Copper bubbles, this all may also lead into a major sell on commodities.

The following moving average/s

DMA (black line): Displacement +10, MA -21 (note convergence cross over of the DMA on the 5th May 2010, pre May 6th 2010 Flash Crash. Also, August the 20th 2010 - marked in red horizontal red lines)

Good to watch DMA now pointing upward for any divergence.

No comments:

Post a Comment