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Wednesday, November 25, 2009

VIX, Oil, Banks, Gold, and Dollar Charts

The VIX weekly's expanding triangle suggested new lows were coming. I think they can go lower sub 20. In fact I think a nice sub 20 reading would be great evidence that supreme complacency is back allowing a P3 to occur.
Oil has yet to retrace 50%. I think it challenges the blue box target area that is inherent in wave 2's. It seems to be consolidating anyways for a move higher.
Again the blue box would be a proper wave 2 target area for the banks. It seems to be forming a triangle. And before you critique the triangle as being inferior for some minor reason, I will remind you that these are the kinds of triangles that usually work.
Gold is well on its way to my Inverse H&S target of almost $1300. I don't know if it will get there but man it could see some huge move days coming. Its a steamroller but when it peaks get the heck out as its likely to do what OIL did - get absolutely crushed down. Bullish sentiment is almost at an all-time persistent record for Gold.
The dollar has this neat little positive divergence that is most bullish if you ask me. With all the dollar watchers its no wonder it just keeps trudging lower. I want mayhem and extreme bearishness! Break that RSI down a bit more and start panicking some dollar-watching bulls!

Jeepers, it could take out 2008's low for all I know this count is wrong. Key for this: I think we need extreme bearishness.

So all in all, for the most part, these charts support some further market(s) up moves. Doesn't have to be and I hate to keep pushing the envelope on these things but I am trying to assess things honestly.
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