Whoops. Was that an air pocket?

And is the parachute working? Or the bungee cord? That we won’t know till next week, but we do know now that the price has returned to the bottom zone. As can be seen there are other regions of the zone below so not much is proven by taking them out, aside from the proximity of the stop which would officially put our Dow trade into cold storage.

Today we think the market is oversold and should bungee back up. But, as we have remarked many times, a market can go from oversold, to really oversold to incredibly oversold to whoops you’re bankrupt. That of course is the problem with mechanical oscillators.

This letter has been so effective about the gold market (especially) that we ought to get a gold medal. Last week when price broke out of the triangle we remarked that it was a buy signal.Folks, this is one historic market, and it is not finished yet. If you have been reading this letter for some time and are not long gold you better go in to your bathroom mirror and have a talk with your reflection. Our “hints” and “casual suggestions” (we just don’t “recommend” trades) are supposed to inspire you to look at the chart and say ‘get serious the maestro is not kidding’. Well actually most of the time we are kidding (about politicians, reactionary economists, current events, the weather, (a partial list), but about trading, never.

Do we think $100 oil is a big breakthough? A pscychological one perhaps, but just the continuation of an uptrend which the general investor should be long. (See GOLD.)

SLV has also given a buy signal for the aggressive. Canny conservative will want to see the high taken out, where those clever speculators who took this signal will be adding on.

We were derelict and also behindhand and deleterious in not having drawn the upsloping trendline for traders, but you got the idea. Traders are again short the dollar. As investors were all along, though the bounce may have been painful. We foresee a test of the low. And right now we see it holding. Could this be the beginning of a bottom? Tomorrow we may not be able to see at all. It is playoff season, you know.Look for the tigers to maul Ohio State. Tigers are on a rampage. Won the Darwin Prize at the San Francisco Zoo.

Full disclosure: Ex father in law was Chancellor of LSU.

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