My Home     About Me

0920 EST Tuesday January 24 2006

Good Morning: Yesterday, as we suggested might occur, the market gave a very good account of itself on the back of a near 10% gain in General Motors GM that helped stem continuing declines and rally the markets across the board. As long as these markets do not break down substantially further, there is always a chance of a reprieve of some sort being granted, at least temporarily, so we need to watch developments carefully going into month's end, as how goes the month may go they year and this could be a more believable or realistic template for how the market may act this year. Fortunately, we recommended covering any remaining Google GOOG short positions at yesterday's open and that was a good thing, because Google also put in an impressive rally for the day, that resulted in its largest 1 day gain ever and is really not a surprise as characteristically, this can occur when a valuable stock, gets temporarily taken out and is artificially devalued more by emotions than anything else and highlights the opportunities such events can offer to investors and is the sort of thing we are constantly on the lookout every day with MODAR, seeking to highlighted extremely undervalued opportunities. In fact, yesterday, one trade we unfortunately missed, but should not have was a case in point. GETC Geotec Thermal Generators looked to be very undervalued basis yesterday's open and had a terrific intra-day chart profile and since we had already recommended it Friday, albeit somewhat later than our more usual practices, we were again offered the opportunity to buy a pullback to around $0.28, that very quickly rose 50% or more and it was our intention to list this is a buy on the open, but due to the overwhelming amount of activity, this was regrettably overlooked. But it continues to show what is possible, especially when an extremely undervalued and unrecognized issue such as GETC suddenly gets discovered because it's potential value based on its most recent quarterly report, could put it in the $0.50 ~ $1.00 range even as soon as sometime this week. Frankly, this was one trade we messed up on and should have been more aggressive.

Last week we reported that the Dollar's days were numbered and the US Dollar succumbed to some heavy selling almost immediately thereafter, especially over the weekend and in a way, Gold looks to be under-reacting to this, perhaps in part because until recently Gold was in synch with the Dollar's rise and it may be having a hard time in the early going, separating itself from this unusual phenomena and actually getting back to a more normal expectation wherein when the Dollar sells off dramatically, Gold should rally equally dramatically. It may take some time for such a scenario to re-adjust itself, so the surprise may still be that a Dollar rebound. could also help Gold up...

That may still occur, although it looks as if Gold is for the moment consolidating and yesterday remained remarkably firm, just under its recent new 25 year highs on the back of Platinum setting new all time record highs over recent days... A very bullish development for Platinum and Silver remains locked in a range at just above the $9.00 area for now, extending from $8.80 thru $9.30 or so, which is ok.

Technically, Equity indices look somewhat vulnerable to further declines following yesterday's nice rebound and that would put them in sight of the downside extensions we mentioned yesterday basis 1,250 on the S&P with commensurate moves in most other indices. Oil itself may have also run into resistance around $69 and is easing back for now, which also may help support Equities in due course.

Trade Well
From the Desk of Savant

A new report is available on CFRN regarding our Gold strategy. The report is in PDF Format. We will also continue to update you via - "Trading Markets" - the one stop shop for savvy investors.

Trade Safe
From the Desk of CT

Technical chart patterns   support/resistance levels   S&P 500 chart pattern   ETFs (exchange traded funds)   Deron Wagner   emini's S&P 500   earnings   economic data   Biotech HOLDR (BBH)   Emini's Nas 100   Short selling ETFs   exchange traded funds   sector rotation   etfs   corn futures   selling options   commodities   mcio   minecore   sapphire