Wheeee!!... or should I say Wii?

SINLetter stock pick contest is over and I have apparently won this Wii thing. I am told the kids are going to love it. Truth be told, I would rather have a Fender tube amp, but what ya gonna do?

The picks were all made using the same TA I put up here all those months and over on the main website. Why not give TA onDemand a try? I have some repeat customers who apparently have found value in it. If interested, just hit the link over there on the side bar.

USD, XAL and the Anti-Dollar trade

I am not necessarily making any kind of reco here, least of all on something that has been tracking the USD so religiously. Also, you will recall that your faithful blogger lost money last year on the airlines. That said, it is crystal clear what is the anti-dollar trade (3 major amigos being oil, euro & poor old gold, which has gotten caught up in the hysterical momo) and what isn't (airlines). The only way I would consider longing the USD is through cash reserve. I would never leverage something with no intrinsic value and no long term support. But the airlines present an interesting play if you're bearish oil, which in true 'never learns his lesson' fashion, I am.

SLV

A new use for the blog

As mentioned previously, I do not have enough time anymore for daily blogging, but as you have seen it is a good option when I find an interesting chart and want to throw it up somewhere. Also, a reader of the main website asked if I keep the charts that appear on the front page and the answer is that no, I have not been keeping them. When they are taken down it is poof, vaporized. Our $20 upside target for silver off of the bullish ascending triangle is looking good but there is no chart record of it, although there may be one here on the blog from several months ago. Anyway, I will be tossing the front page charts up here for archiving, beginning with the put/call ratio chart that did a good job of indicating a rally (of some sort) was about to erupt.

VIX - Not so fast bulls

The put/call ratio (see chart on front page of website) helped telegraph what turned into today's flagpole rally. However the VIX looks to be saying "keep your heads screwed on straight bulls". By my eye, the VIX looks like it is in an ascending triangle stance and is taking a breather before heading for a potential breakout. Also, the lower panel indicators appear to be coiling for a move. Keep an eye on the lower trend lines of these indicators as well as the noted support for RSI. If VIX breaks out to the upside, life as you and I know it will likely change to whatever degree.

$NIKK - Japan market new lows w/ bullish divy

Posted for no other reason than I saw this and wanted to document it. Let's see how this plays out. A test of our bottom feeder w/ bullish divergence modus operandi. I do not own this market however.

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Just as with Prechter's Theorist below, a special section of Steve Hochberg & Pete Kendall's EW Financial Forecast is available for free, with no obligation. Prechter & EWI were one of my influences and Conquer the Crash is a book that has kept me on the right side of risk even as I 'played' the bull (in nominal USD - bull$hit measured in gold) market from 2003. Again, I do not agree with all of their conclusions, but I certainly do read everything I can from EWI, especially now given the contraction in full swing and the ill wind blowing down the macro financial house of cards. Simply click the banner for one very worthwhile pdf file: