S&P 500 Rally - PPT back from skiing. SPX, INDU, SPY, DIA, TSE, CDNX, FXI, HAU.to

PPT is finally back from skiing and Saved the day and S&P 500 from penetrating November Low. Maybe they have been discussing their cut with new administration and it keeps them away from trading desks? It is not important, what is important that they are back, Gold is trashed and SPX rallied from November Low forming Healthy Bullish Engulfing candles and Double bottom hopes. Rally should be in favor for a while and could be explosive in nature. Fear VIX will go below 40, US dollar should correct down from formed Double Top and Gold will consolidate around 1000. Time is to move into risk plays: Juniors Gold and Silver accumulating on the pull backs, China FXI, Zinc, Copper, Graines - Inflation plays are bargains among Juniors. After news on Sterling Mining SRLM.ob do not forget that you are playing against all odds giving your money to somebody else to make you rich, do your homework, we here will keep you posted on our dreams, common sense in action and cynical view of things as usual.

Market SPX is set for a powerful Bear Market rally. DIA, SPY, QQQQ, TSX, CDNX, DXY, GDX, HUi, XAU

Market is anxious for a rally. TARP2 and Stimulus will be the bifurcation points, expect it to be powerful enough that some will be caught on the upside before it will go down to retest the lows. But it will be tradable and will bring risk appetite back with new look at US Dollar fundamentals, which are not warranting its levitation dreams at all.

Technically we are sitting at MA 50 break up, SPX is stronger then DOW at the moment and NASDAQ is stronger then SPX. Once financials will be running on TARP2 markets will all break up above MA50s and towards MA200. Please notice daily Head and Shoulder bullish reversal, with lows in October - November 2008 as Left Shoulder, Head in panic November and Right Shoulder in January - February 2009. STO is decisively positive and confirming accumulation, MACD is turning positive, RSI is confirming new highs.

For us observation on general markets is a reference point and a sign that new money flow will be available into Gold, Mining and Junior Mining sectors. Canadian Venture CDNX will benefit the most from Fundamental and now Technical picture as well.

CDNX Canadian Venture Home of Junior Mining near Death Exprerience. TNR.v, CZX.v, SST.v, SBB.v, OK.v, RVM.to, RMK.v, AMM.to, ASM.v, BTT.v, CGP.v

This is why I called it obliteration. We have a Buy on weekly and Index is above MA50 on Daily. A lot of companies will vanish into oblivion strangled by cash calls. The best will prosper and consolidate resources at pennies for the dollars. You know what to look for:

1. Trust in management.

2. Financial backing.

3. Solid properties.

4. Manageable country risk.

5. Near Term catalyst to realise value.

DOW DIA is retesting important low. SPY, QQQQ, HUI, XAU

Dow is ready for Inauguration Rally. Index has retested important low and is sitting on a lower Bollinger band with buy signal in Volume and STO. RSI is turning Positive as well.

Silver Wheaton SLW - rocket is ready to launch with Silver break out. SLV, SLW, SST.v

Still a lot of IF here, but if Silver will break out on Gold Move above MA200, this company will pay handsomely: it was almost crashed into the ground by its leverage to Silver price and debts, it will fly with Silver close to 15 again.

Gold at crossroads: will it Break Out Above MA200? GDX, GDL, AUY, DXY

All fundamentals are on the Gold size:

1. Ballooning Deficit 1.2 Trillion before recent Obama Stimulus Plan.

2. Flight to safety from Us Dollar and into Gold.

3. Rising Demand and decreasing Supply.

4. Collapse of the Last Bubble - Treasuries. Gold needs one percent of money involved to fly.

5. Timing is an essence as always.

Bravo Venture Group BVG.v - shine of new discovery.

Orko Silver OK.v - fast to fall, will be fast to come back?

SilverStone Resources SST.V - small brother of Silver Wheaton SLW, Panic Forced Selling is over.

Silverstone Resources SST.v - landing spot for Ben's Choppers

All those charts meditations on the way of things will stay without any positive implication if we will not be able, my dear Diary, to make some money from all what is left from our devotion and common sense practise after mind disturbing dollar levitation. So where are those waters to fish for what will be left of all those trillions coming on after paying bonuses to bail out bankers? We are pleased to help Mr Obama, because we all need weaker dollar and some positive inflation signs. As always we like crazy way of things: like to deploy your ten percent of the capital for one hundred percent return. Gold is a Call on USD going down, Silver is a Call on Gold and Silverstone Resources SST.v is a Call on Silver without any Time decay. Latest deal will double silver revenue in OZ next year and is a necessary step to bring confidence back into the company. You must do your own DD as always and can find some initial information on this blog.

China FXI - it is still there and growing.

Do not confuse market and economy in places like China. My call on Parabolic rise and coming down last year was right on the money, like it was excessive then so it is unsustainable on the downside now. China do not have to do all those bailouts USA did, but they can chose to do all those stimulus like in USA using their Reserves of 1.9 trillion. It is happening already: Agri reform - slaves will be able to sell their land for the first time, Infrastructure - railroads spending in trillions of local currency. Housing and debt problem are disconnected in China: level of borrowing still at its infancy compare to developed world. Nothing will be perfect, but markets have discounted China rising below 5% already. Oil below 100 and recent commodities prices are big presents to the hard working people there, they will scoop the world resources exchanging worthless US Dollars from the reserves for securing Supply of precious commodities.

Gold, GDX and HUI, US Dollar and the market. AUY, SSRI, SLW, CZX.v, TNR.v

Warren Buffet is buying Equities, Jim Rogers is buying Commodities, I am in a very good company and buying Commodity Equities.

US Dollar has rallied today to the new high of 83.22. It has rallied contrary to all last days actions together with a big rally in General markets with Dow +4.67%, S&P +4.77% and Nasdaq +3.43. Is it because of Lehman settlement day? I am not sure, but the higher it goes the faster it will come back. Last time I gave such a comment was about Google GOOG riding to 700. Treasuries had a very volatile day and rallied in price together with markets.

But the real action was in Amex Gold Bugs Index HUI which is +9.38%

GDX +11.53%, AUY +11.3%, SSRI +17.75%, SLW +14.86%. Now we have last confirmation of continued Bull market in Gold: Gold miners took off before Gold and Silver. As I have mentioned it is important that Gold will confirm H&S Bullish reversal with RS at above 750USD.

Gold rallied in Asia to 810 and closed up 1.66% at 795 in NY. Silver was up 3.85% to 9.71.

As we have discussed before, public has a very short memory and we are now in an Election Rally. Greed is taking over the Fear and VIX is down almost 25% to 52.97. Actually this level of VIX over 50 was an entry point for a lot of professionals and Rally is only in its start phase.

Gold has rallied today even with US Dollar in a very strong rally, it has rallied against all FIAT currencies. Looks like FED do not like to have any chances and is preparing next Rate Cut.

Once Gold will cleared 800, HUI and GDX (trashed by forced selling into the levels of Gold at 500USD) with all Majors will be in a Rocket stage. Canadian Venture has shown some life with +4.1%. TSX was up 7.2%.

Positive emotions will spill over into the Juniors with 25-50% intraday rallies within next few weeks. Those who did not Sell will enjoy the Rally. You can not simply accumulate any meaningful position in this sector without driving the price. We were suffering the most, we will gain the biggest. M&A will be the driver of wealth creation with five and ten buggers to come into play again.

By the way all stimulus packagers are more then welcome: we need a lot of inflation fuel for our Bull in Gold, Silver and Commodities.

Double Bottom Must be confirmed by Fear Index - VIX is staging a reversal.

Yesterday was formed strong Bearish Hammer. Today is the day to paint the chart for Programme trades to start buying. Once PPO will make a cross over VIX will drop like a stone and Greed will take place from Fear. I was right to take profit on Google GOOG puts and is open to market rally now. I will revisit fundamentals on Google later.