April 2012 Update

Last month we discussed that early on there could be some negative pressure for the markets and to keep a watch for a buying opportunity. We did this because historically March is statistically a soft month. As the markets proceeded we only saw a few days of pressure which was quickly bought and bid up. This gave us more confidence that our indicators were right and further upside was under way.  Moving forward toward the end of the April we see some resistance. This intermediate Cycle top should come in to play April 23-25. Coincidentally, this is the same time period we have Apple earnings. Is this a Coincidence?? Only, Time will tell. Historically Q2 earnings for Apple has come in below their Q1 blow out earnings so be cautious near here, should be very interesting. As we indicated in our last update, we are still expecting the mega phone formation to play out in months to come. This would suggest that we are still buyers on corrections. Now for other major markets we see oil getting ready to base and proceed upward. Gold has sold off accordingly which should continue through  June and July. However, in the intermediate term we see some signs that gold could have a counter trend run upward till end of April. We see bonds continuing their downward path. Keep your eye on TBT this should at some point get a nice bid up. looking for 19.20ish to establish longs.

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