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As the markets continue to do a whole lot of nothing, I think we have a condition where the markets are simply working off an overbought condition, while keeping everybody in a state of perpetual fear that we’re going to come crashing down. All of the positions that I picked up yesterday did exactly what they should have done and they’re all profitable. That is a good enough market tell for me.

There’s little to discuss but I do provide a few trade ideas and I also talk about TBT and suggest it could work its way back to $50.

Yesterday the trend triangles gave TSLA a buy, and I support that view with the Fibonacci retracement action. If you have a stock in your portfolio that you unsure what to do with and you want to have it analyzed, click here. I’m finding the best way to utilize these buy signals is to wait for a clear trend to emerge (avoid congestion), and buy the pullback as long as it’s contained within the uptrend.

I also talk about the bearish wedges that are showing up in the precious metals, although I’m not ready to stick a fork in them. There was a gold webinar last week that showed 5 ways to play the gold market, and if you want to watch it on your own time, the recording is here.

2 Responses to “Relieving an Overbought Condition”

  1. Paul Says:

    As I mentioned last week, we will test 1150 sooner than later. I would be interested to see when your signal turns back to bearish…..there is at the very least a 50-70 point drop coming and it would be nice to cash in a lot of that drop!

  2. jeff pierce Says:

    I don’t see any warning clouds yet, but you’ll be the first to know

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