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UPDATE 05/28/07
STOCKS:
I am
expecting another down leg in the Dow to the 13,200
– 250 area to complete the current correction. That
would lead to yet another rally to new highs.
Although I am expecting a top this summer, the
indicators are not showing any signs of trouble yet.
I am watching the Utilities and Transports for peaks
prior to the Dows.
A
break below 500 in the Utility average would
probably indicate that index has topped for the year
The
Transports appear to be completing a rising wedge
formation. A break out of this to the downside would
lead to 4200.
These two indexes may not be joining the Dow on the
next move to new highs.
BONDS:
June
bonds broke below support at 109, but managed to
close back above it. As stated last week, I view
the current correction as a buying opportunity. A
solid move above 110 would indicate the correction
has ended and higher prices will occur this summer.
Commercials have accumulated very large net long
positions which indicate much higher prices and
lower rates later this year.
GOLD:
I
haven’t been real bullish on gold this year due to
the inability to move above $ 700 along with the
commercial short positions. However, I am still open
to one more strong rally to unfold next month and
into the summer.
Gold
needs to move back above the $665 - $ 670 level
soon.
The
triangle formation is still alive in the XAU which
also supports a rally coming soon.
Regards and Good Luck,
Jay
Sanderson
TimingStock.com
To
see Jay's past Market Commentary and other products,
please click here
www.reliablestockcycles.com
________________________________________________________________________
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 | 
