Thursday

Daily Technical Indicators

Filed under Dow Jones, Technical Analysis

Markets continue to make lower lows but our indicators suggest that the end is near - a matter of days. Inauguration of Obama on Tuesday would be a nice turning point which would fit nicely with technical indicators and the Plunge Protection Team’s (Men In Black) welcoming campaign for the New President of America. As we approach the bottom, be ready for swings and volatility (read opportunity to make some money). The Inflationist recommends only taking long positions during this period of volatility, so even if you are wrong, it would be temporary. So long on significant intraday falls, and take profit when you are up. We longed China H-shares in our personal portfolio today at 6830 at $2/point and took profit at the close (6965) - $270. It is hard to pick the bottom, but keep in mind the lows in November would give one an idea of how much lower we can go (based on the indicators suggesting that November was the low for now).