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UPDATE 02/05/07
STOCKS:
Last
weeks update indicated that a correction could be
unfolding if further selling continued. That didn’t
happen and the DJIA moved up to yet another new all
time high. Weekly MACD indicators are close to
issuing sell signals but still have remained
positive. As mentioned before, the next cycle low
isn’t due until the 3rd or 4th
week of March.
One
characteristic of the 20.5 year cycle I follow is
that there has always been another significant low
about 4 1/2 years later. February marks 4 years, 4
months from the October 2002 low. The latest this
low occurred was 4 years, 7 months. Thus, if a sharp
correction does take place, it will probably be
relatively short lived and will provide another
buying opportunity.
Since 1900 the DJIA has made its high for the YEAR
in February only 4 times; 1903, 1931, 1934 and 1966.
The odds are favorable for new highs later this
year.
GOLD:
April gold can’t seem to hold above the $ 660 area.
If the market can’t begin accelerating higher soon,
a move back down to the $ 600 level will resume.
Next week should be key in the future direction of
the gold market. The commercials have taken on huge
short positions which is going to be a problem for
any sustained up moves.
T
BONDS:
March bonds made a triple bottom at 109 ¼ and moved
up sharply to 110 ¾ before closing the week just
above 110. The daily MACD is about to give a buy
signal. Still need a close above 111 ¼ to confirm
the low is in at 109 ¼.
Regards and Good
Luck
Jay Sanderson
TimingStock.com
To
see Jay's past Market Commentary and other products,
please click here
www.reliablestockcycles.com
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Commentary Archives
Long term cycle is bullish -
1/06/07
Next Cycle Low is due In March
-1/27/07
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