Wall Street mixed. Now the question is - do we just have three...

Wall Street mixed. Now the question is - do we just have three or four days of sloppy trading to relieve the pressure on some of the indicators before moving higher or …. well you know the rest of that sentence.

What we also have to think about is whether the sharp move up in the Wall Street indices over the past week or so could be classed as a blow-out top? Russell 2000 (RUT) could certainly be put into that category.

A few times I have mentioned the fabulous uptrend in XIV (the inverse of the VIX), if that uptrend is broken I will be running for cover. Now whether that turns out to be short term or not, I do not know.

We are entering a really important period but of course when is it ever any different.

Gold recovered in our time zone yesterday but has not been able to carry though with the improvement overnight. I am still of the opinion that gold is trying to find a base. Interesting that our Gold Index (XGD) reached a beautifully oversold area yesterday.

US Dollar finished slightly weaker. At the moment it is struggling to even maintain the short term uptrend it has tried to build over the past couple of weeks. Once more, a waiting game.

Our overall indices were sloppy again yesterday. However, a tremendous amount of money is now swirling around the bottom end of our market. I get a bit nervous in this type of environment as people can become much more believing than they would normally be. Remember, at the end of the day, traders usually end up fodder in this end of the market. Enjoy it while it lasts but don’t believe everything that is put in front of you.

Sorry about the lecture – obviously been around this game too long.