Tuesday, May 10, 2011

05.10.2011


I'm not typing, rather I am going to watch about three or four videos (one per request) and place them on the blog. The first one is mine and have yourself a good day. Talk to you tommorow.













UPDATE 1300PM EST

Paper market is now at a major level of resistance where it has met the Fibonacci retracement of 38.2% as well as the five day moving average as it is holding the one day for support. It's still bullish to go lower but only a small amount. This is why $35.00 area would be a good level because that would make a higher low from the previous $33.00 area. Also, resistance can work as any other regular level and keep on moving within' its current trend. The trend is an extreme reduction in volatility making it a little more volatile than normal from previous days and weeks. Intermediate term it is bearish and starting to get cautious because of the five day average. Super Longterm it is bullish because the move from $50 to $33 is peanuts in that it was only a 16% percent retracement long term (50 high / 4 Low) ^ 0.84 x 4 = 33.38. Using Fibonacci theory as long as you are above 61.8% of the range then its mode would be considered bullish which it is. As long as its above 76.4% then it is very bullish which is still the case. The next level is 85.4% which is $34.58 puts us extremely bullish and for a few moments it was below this level. If this is a top it is natural to bounce back and forth between these levels and very often find major support at the 61.8% mark (50/4)^.382*4 = $10.50. The other level is the (50/4)^.618*4 = $19.05 and its pretty clear that market should have more room to grow to the upside because of how impressive its break was as it found a test there ($19 area) in 2008 and again in 2010. The break has been made a few months ago and very often major resistance will translate to future major support. Of course this would cause a major disconnect in the physical market and Gold and the Dow Jones have both yet to find support at 1,000 since lifting off as well.

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