Re:Wave 5 up from 2632 nearly wiped out!

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Posted by Paul on July 24, 2007 at 22:40:44:
In Reply to: Wave 5 up from 2632 nearly wiped out! posted by Gary on July 24, 2007 at 17:03:06:

Tech still not leading the way down, which is more bullish then bearish. Today was kind of a washout based on downside volume. Statistics from sentimentrader.com - "The selling pressure was intense, as volume flowing into issues that were down on the day swamped up volume by a 13-to-1 ratio. The last time we'd seen that kind of pressure cooker was June 7th, which marked a short-term market bottom."

If one is a bear what is concerning is that the Fed meeting is only a few weeks away and now w/CFC dropping a bomb today saying loans are not just an issue in subprime but is now impacting prime - the Fed probably goes to neutral at the August meeting. The bulls could and most likely rally on the policy change - probably leading to one last run with less participation which should create a top.

Gold and gold shares should do very well in that enviorment.


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