DOW INDU General markets at Buy from Oversold - Bear Market rally. FXI, HAU.to, DIA, SPX, QQQQ, CZX.v, LUN.to, CUU.v,

This is why we did not like to short the last leg down and preferred to accumulate Rally plays like China FXI, Zinc CZX.v, Zinc/Copper LUNto, CUU.v, Grains HAU.to. Now the chances are that US Dollar will go finally down on fundamentals, markets will rally and then US Corp should prey that Oil will stay below 75, our Lithum ideas will be handy as well now. Commodities is the place to be for us again: base metals Juniors are sold into the ground - for China play and Gold and Silver for "Bet against Central Banks", it is a new fashion among Hedge Funds when they are buying gold.

DOW has Broken Down - Collapse is imminent? DIA, GDX, CDNX, FXI, SLW.

Dow has broken November's Low and everybody is bearish. Rally we have been talking about did not materialised so far. Dow theory gave a Sell last week according to Jim Paplava. We see a lot of conflicting signs. Dow is heavily exposed to financials and one talk about nationalisation has killed rally in the making. Reminder - Dow is only a reference point for us for our reinflation plays on China: FXI, Grains HAU.to, Zinc with CZX.v, Copper with TNR.v and other Juniors covered. We do not see Collapse as an imminent at this moment to be sure enougth to build Short positions. Our Gold and Silver plays are acting "Bold and Swiftly" sensing destroying of the paper currency - they have finally decoupled from general markets and we are making new highs on financials melt down. Back to general markets observations: Obama happen to be a Rock star without a band for a while, Tim the Secretary has a verbal dysfunction: he has managed to anger Chinese and then they spend time at a different parties with Obama before the "Bold and Swift" action. His general market observations were even more lethal then our blogging (our readers can not make so much distraction, we do hope) about matters we do not understand, he forget to mention after all - that all what he has been doing before was wrong and now he will make this and that and that. Markets are build on expectations and now they are expecting, and rightly so, Insolvency Admitting from the national banking and insurance system and following nationalisation. You can not talk about Stress Test with already insolvent banks, go to Monaco and make a Crash Test on Formula One - it will Crash and banks already did as well. Make up your mind and nationalise with wiping all equity out or "nationalise" with diluting it to almost zero. Taste the difference, but do not test the markets. Dow 5000 is much more closer then the people think. Deflation is too dangerous, USD is making a perfect Double Top after Moody's news about old news that Euro is exposed to more then 1 trillion Eastern Europe liabilities. What about from 2 to 3 trillion losses in USA? If it was not a Fake Break up into Second Weaker Top and US Dollar will rally further above 92 Depression and Deflation will be already happening. Gold is sensing it as well as agency problem as we have discussed on Friday. We do not like to challenge history, but all these conflicting signs are making us unsure that the break down will happen now: US Dollar is at Double Top and sliding down two last trading days, SPX did not violated November LOW so far, Vix is much lower then in November - professionals are not in a panic as public in November selling at exactly the wrong moment, Gold play becomes too obvious and is on front pagers. Should we be not bold enough to see the collapse our Gold and Silver positions will protect us, Zinc, Copper, Grains and China will be under pressure. If rally will materialise on finally some action regarding Failed banking system to isolate it from Toxic Assets (which should be written to zero), Gold could be consolidating after reaching 1000 in a weekly Cup and Handle before moving much higher. Our reward for insisting on continuous Equity play will be in Juniors, even if profit will be taken from Major Gold producers in a short term. Calls are reduced on Majors and GDX, reallocation to Silver and Juniors. If rally in general market will bring some pressure on safe heaven Gold play we will have better entry points in our cherry picking game, if Juniors will continue to rally with market we will have momentum with us. More on the charts to follow and do not forget that all our observations are not about your lunch money! It is pure Science Fiction as usual.

DOW general market is trying the Rally mode again. DIA, SPY, QQQQ, TSX, CDNX, HUI, XAU.

Mr. Market is listening to Obama's rhetoric and shaking off bad news coming from the economy, attempt is to hold recent Low retest and turn it a Rolling Bottom on daily. Two Bullish hammers are showing Short Sellers hesitation to play with Obama at the moment. This view is supported by Treasuries Sell off, VIX reversal and US Dollar pleads to let him go Down.

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.

General market Dow DIA rally is waiting Auto Bailout Acceleration. FXI, EWZ, GDX

General market Dow DIA rally is waiting Auto Bailout Acceleration. Bad news are not working for a while now. Fear is fading, US Dollar is going down signaling Inflation, FED cut and auto bailout will ignite rally for a couple of months. We expect Gold, Silver and Commodities to decouple from financials finally by the end of this move Up.

Dow DIA is at the Break Out point short term. DIA, SPY, QQQQ, GDX.

Market is ready for a short term rally. H&S reversal is forming up and Dow has managed to close above the downtrend line. Strong move up above 50 MA will bring more buying. Bailout of auto could be the next catalyst.

Fear VIX is going down, Panic is out of picture for a while. DIA, SPY, QQQQ, TSE, CDNX, USD, GDX

Fear Index VIX is making definite break down from recent highs, panic is subsiding and Greed and chasing performance is coming back. Distorted picture of Value with Panic and Forced liquidation is changing to fundamentals and value in solid assets with clear Demand and Supply economics.

Dow DIA stages agressive rally after recent collapse. SPY, QQQQ

After CitiGroup C bailout Fear VIX has diminished and is on track to subside and be taken over by Greed and chasing performance. Bubble in treasuries is reinforced by Quantitative Easing when money are printed and FED is buying Treasuries and other debt instruments. Rebalancing is pushing funds to sell low Yielding Treasuries and buy Equities after recent collapse. Bailout of autos GM and F in any form will bring more fuel to this rally. Like we have discussed shorts were served Fried this week.

DOW DIA is at a very important H&S Reversal point, time for Action. CS, FXI, EWZ, GDX.

We can see from the chart that we are half way there: saving the world from Deflation spiral Japan style for the next 10 years. Bold action is needed now over this weekend to kill the Fear, confirm H&S Reversal squared by Intraday Double Bottom. Dow must overtake 9653.95 on weekly close to diminish Bearish Flag. If not, we will have a waterfall, further assets fire sell and self reinforcing deflation spiral. Dow for us here is only a reference point, but very important now: it is showing whether FED efforts reinflating economy are working or not. Deflation will be forgotten in two weeks after move above 10000. But action needed now. All reinflation efforts are leading to "liquidity trap" if velocity of money is falling of the cliff: banks are not taking any risk and just keeping money at the FED. The key to all is US Dollar: it must be weaken immediately and everything is ready for it: just one push and world will be saved from Deflation Monster. We will refer to further charts on what must be done.

Dow has retested the Low, Bull will push the Fear, Greed and Inflation is back. DIA, SPY, QQQQ, FXI, EWZ, GDX

I hope I will not spoil it...In the beginning of the day Bottom seems to be falling off with the last Hope. News are all Negative and the last faith is lost. I guess it is how Mr Market is testing us. Another important observation: Who is leading Whom - China was up more then 4% after its more in Depth Stimulus Package appreciation and today we have experienced Powerful Retest of Low. All three major Charts has been alligned today: Dow restest of the Low, Fear VIX made lower high on this Retest and USD has made Second High forming Double Top. Everything is ready for transition: Fear for what has been left of your Capital to Greed and chasing perfomance. Dow is only the refference point for us - our heart belong to another tangible Things which are Nessesary as always. We were worring about mere existence of the Financial System, then Currencies and now Deflation. Time is to stop worry, let FED fight Deflation and position our pennies for Inflation Tide. Technical Analyses is never a pure scince and is only a way of Meditation on the Way of Things. It only works for those who are making money and it never works for those who are losing. I do not know what kind of fundamental shift it is Painting for us today: news are awful, "deflation is everywhere" and no Hope left for our Gold, Silver and Commodities Bull. But there is a Knowledge in the Market and those who know are leaving their footprints. We mere mortals can not call to Hank or Ben, but some others can...They are making money and we can see it on the picture. Trends are Bigger then Life and money involved are Big, so we can try to make our small stake on it: following the major Trend - Debasing of the former Empire currency. One of the "unknown" fundamentals TA is telling us now could be coordinated action after 15th of November with Rates Cut and weakening US Dollar policies - Quantitative Easing is all over mind those in power now. Trade will be made to prevent the collapse and allow orderly decline of the currency to stimulate Export and bring Inflation back.

Dow Jones Transportation is staging a Bullish Reversal.

Reversal in Dow DIA must be confirmed by Bullish Reversal in Dow Transportation: 107.76 must be taken out above 110. Oil below 100 will help here.

Panic has lifted the US Dollar with collapse in the markets.

I like this chart. It is USD to Dow DIA ratio: just look at that perfectly managed picture before Mid September Lehman collapse. USD was rising with manipulation and Dow was sliding: my guess idea was to shake out Oil, Gold, Silver and Commodities Speculators, bring prices down and then stop pumping dollar and bring election rally. Something went terribly wrong for someones: after Lehman Dow collapsed with all markets and US Dollar made a shooting star killing the masterminds behind this with last economic strength - export. Good news here is the Reversal H&S formation which show new unusual for us reality: Strong market in Dow means weakening US Dollar losing its "safe haven status".

Dow Jones Industrial DIA - Holding the World on its Shoulders.

Cream of the cream, Blue Chip stock former pride of USA Corp. Most liquid they took the hit first with Margin calls and Redemptions - they will show signs of life first. Strong Reversal H&S pattern is forming. With awful news on unemployment 6.5%, Ford F and General Motors GM on Friday market has managed to rally after two day shock of slipping back into abyss. We are on the one side here: we need reversal confirmation and that 9750 on Dow will be taken back. Risk if that it still could be a continuation Bear Flag pattern if 9750 will not be taken back - then the waterfall.