Tuesday, February 23, 2010

2004 All Over Again

Hi Folks,

As I mentioned in an earlier post, 2010 is shaping up to look very much 2004 in the markets. A controlled downward slide. This should be an environment to draw some downward trend lines and Buy and Sell at the extremes. It looks like we are starting to head lower again. These directional shifts should be anywhere from a couple of weeks to 6 weeks.

I'm still long Gold here. It looks like the dollar should have a pullback here dispite what the "smart money' says about the dollar moving higher. I do belive that the dollar is going higher but where I differ is in the timing. I believe we will get a sharp, quick pullback pushing Gold higher over the next 2 weeks or so and then turning around to return to the dollar rallying and back to shorting Gold.

I recently shorted CREE. Although the fundamentals looks great, we have come to far too fast. The parabolic move is not sustainable. Parabolic moves can be dangerous so use tight stops if you decide to short.

Thanks and Good Trading,

Tim Winters

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