The Brains Trust, page-14939

The rally on Wall Street continued. The S&P is basically doing what I wanted it to – the question is, is it going to reach my target of 2600? As I mentioned yesterday, the overhead resistance here is getting tough. The NASDAQ Comp really worries me. It has rallied right up to the heavy overhead resistance from the previous top pattern.

And who could go past London. Perfect rally here. As always perfection worries me but it is the most beautiful chart – but very bearish. Another new all-time high in Brazil.

US dollar rallied slightly after yesterday’s sharp fall but finished with an inside day. Commodities were mixed – hard to see much of a trend anywhere except palladium. Have no idea why palladium is outperforming gold by such a wide margin in recent weeks but new all-time highs here again. The gift that keeps giving. Gold has continued to find support around $1280. I would have liked to see a bit more of a sell-off here simply because sentiment got so bullish recently when it looked like the price was going to threaten $1300. Coffee finally looks good – and I am not being cynical about us all needing coffee in the difficult trading conditions we have been faced with recently!

XJO moved ahead nicely yesterday but still struggling a bit around the highs that have been put in around this area over the past couple of months. Gold stocks are correcting as I had anticipated. So far I like these little consolidation patterns that are being built. Watching carefully. As mentioned previously, I can make some fancy higher predictions on gold and gold stocks but dependent upon building the type of patterns around here to support these projections.

Also keep an eye on steaming coal it has weakened off in the last week or so. Bit worried about this market – no, more than a bit….