Tuesday, March 16, 2010

NEW UPDATE: to clarify previous pot

If we do not get a sell off soon, i have reason to believe we rally to 11,100 in the next three weeks into mid april.

Major tops usually take a lot longer time to transpire than we anticipate. So, even though indicators are signaling a sell off soon, that move may be delayed.

We have a bearish head and shoulders pattern in the GDX (Gold miners) which leads me to believe gold will sell off during its seasonal bearish time of year. More often than not Gold sells off from May to August.

In summary: This market looks like it can make new highs. However, in the not to distant future (three - four weeks) I believe we correct for 6 months, all the way down to 8,500 level.

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