Economy Update:
Even with the gloom and doom, I still see a positive economic outlook. The underlying strength of consumer spending and business investments should sustain a U.S recovery. Did you know that business investment in machinery and equipment rose at a annual rate of 13% this quarter?
The only missing ingredient is job growth. Looking at the past recessions, business investment in machinery and equipmenthas forshawdowed every employment upturn! This downturn is probably attributed to investors taking some profits. Positive economic news should lift this market in the weeks-months to come.
S&P Update:
Natural Gas Update
Many people love to jump in natural gas after they see a correction. What you have to realize is that natural gas trends down for upto 21-trading days (it capitulates--and just as you sell your UNG/HNU.TO blasts off 30-50%).
Long-Term Trend: Bearish? Why? Until we rally and hold above $5.80 you have to be shorting every 10% rip higher!
Question: Should I be going long?
Answer: Unless you have money to gamble.. or the channel below HOLDS. Please look at the chart. 5.10 is support for the channel. if that holds, then yes, we're likely going to rally to 5.30 and then eventually 5.50.
HAVE TIGHT STOPS IF GOING LONG.
Support/Resistance Levels
5.80 Resistance (04,05,06,07,09,2010 resistance levels)
5.40 Resistance
5.15 Support
4.80 Support
4.50 Support (eventual target?)
Gold : Target 1020 if 1060 breaks.
