Monday, December 15, 2008

Ratio Roundup

My indicator was down today, but not broken. One sector is in critical danger.
The financial sector made a new O today, indicating an increasingly volatile and bearish environment.
The buywrite/index ratio is rising (bearish), but it approaching a falling 10sma (bullish).
This breakout in the HUI/GOLD is bullish for gold stocks, so I'm buying the dip.
Long/short commodities vs long commodities looks attractive here, but keep a short leash.
Risk appetite has yet to return as treasuries still outperform junk.

Banks look ready to fall again. Tomorrow will be crazy, and though we may see a rally, I think the market is ready to roll over. Hopefully gold will pullback, but if the dollar can't find support by Thursday, I'll be rolling into shiny yellow bricks and yen.

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