Early this morning I saw extreme buying in the S&P futures and all across Europe. The DAX (German index) was up over 250 points. When our markets opened at 9:30 those highs were it for the day and we never looked back. I saw weakness in the Russell 2000 then I started seeing weakness in the NASDAQ 100 and then the market was very slow. At 2:15 the biotech stocks got hammered and the S&P futures dropped from 1935 to 1910. The NASDAQ was down 85-90 points after being up on the day, the S&Ps dropped substantially, and the DOW was up only 30-50 points. At the end of the day the market closed up 100 and the NASDAQ was down. This is telling me that the market is trying to find the bottom. I am 75-80% certain that the low of 15379 is it for the year. I am looking for a higher low in the market in the 15500-15900 range in the next three to five weeks. If the market comes into this range I will provide names I would be looking to buy if I was a long term investor. Oil was all over the place today. I see no clear patterns in oil on the bigger time frames but I am starting to see weakness in the oil stocks. When oil was trading in the 61-64 range I started seeing selling and deterioration in many of the oil stocks. The oil stocks did not participate to the extent one would think when oil made the big move up from the low 40s up to the mid 60s. The deterioration in the oil stocks made me think that the move up in oil was going to be short lived, and it was. I am very bearish on the weekly charts on gold. Yesterday when gold closed above the 1144 level I got a buy signal. I am looking for a pullback in gold into the 1126-1135 range. If I do get this pullback in the next 4 days it should be short lived. The move up should be into the 1150-1165 range. I do believe the low of 1072 will be the low for the year. I would not want to own any gold stocks at this time.
Biotechs Reverse Strong Uptrend
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