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UPDATE 04/22/07
STOCKS:
While the markets may not always trade according to
its cycle patterns, in the last 2 months it behaved
accordingly. As mentioned in the
Feb 25th
update, the market should top out in beginning of
March, make a low in March, and than rally back in
to April-May with the odds for new highs. Finally
after a scary March all major indexes closed
a strong weak at new highs.
Going forward, the markets may correct some this
week as the DJIA is above its upper Bollinger band
on the weekly and at the upper band on the monthly
chart. It isn’t uncommon for some weakness to occur
after options expiration.
Although you wouldn’t know from the markets strong
performance, there is a cycle low due in the second
week of May. Once we hit that low I would then
expect one more advance to new highs before the top
is in for this year. Here are some early projections
for possible highs; 13,150, 13,450 and 13,715.
T BONDS:
June
bonds recovered some last week, but I would like to
see a close above 112 ¼ to indicate a change in
trend. There is still risk down to 109 ¼. I am still
expecting much higher prices and lower yields later
this year. I believe the Fed will eventually be
forced to ease rates again due to the housing
market. The commercials are building huge net long
positions and are anticipating lower rates ahead.
GOLD:
June
gold continues to move higher and will be facing
stiff resistance at the $ 700 level. The gains in
both June gold and the XAU have negated the possible
triangle formation. I am not overly excited about
the longer term prospects in the gold market as the
commercials are heavily short. The commodities
markets are known for erasing several months of
gains within a week or two of trading. I
would be cautious in this market.
Regards and Good Luck,
Jay
Sanderson
Moshe Kahan
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
Market still positive -
2/05/07 | 
