It seems that just about every asset class at some point in its recent overbought condition has managed to correct its excesses -- except in the equity averages.
Mike Paulenoff is getting preliminary technical indications that the pullback in the TLT's from the September 25 high at 90.40 ended at this morning’s low of 88.01.
The combination of the continued fallout from Amaranth, the debacle in oil prices, and the exodus from commodities to bonds or equities continues to hammer gold prices.
Now that the U.S. Oil Fund (USO) appears to have completed a 50% retracement of its recovery rally from 54 to 58, both Mike Paulenoff's work indicates that a secondary recovery upleg has likely started that should propel the USO above Thursday’s high at 58 to a minimum target of 59.
Today's high so far in the GLD at 60.27 completely filled the lowest of three unfilled gap areas left behind in the aftermath of the Amaranth energy sector debacle.
Mike Paulenoff's work indicates that November crude oil is very ripe for a recovery rally that propels prices for a test of important near-term resistance.
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