Yesterday I made a note in my blog post that if you followed the charts you would load up on the reflation stocks in Oil, commodities, Gold/Silver and techs. Today the market action has proved that I was right. Wait a minute -- it was really not me -- the charts were telling me where the markets are going.
I said oil up, commodities up, Gold/Silver up, techs up and that a single day's action does not end a trend.
I was right. The trend continued today. For those of you who bought/re-loaded into the reflation trade yesterday when the market pulled back 120 points -- you were rewarded. So was I because I put my money where my mouth is.
By the way -- while my chart reading shows bullish outlooks for Dow, Nasdaq, S&P, Oil, commodities, Gold and Silver -- there is one area where things look gloomy. Really gloomy. The once mighty U.S. dollar. Looks very weak on the charts!