Well, a few setups are sparking interest this week. There are some indications that we may see both the continuation of the slide in bonds and gold as they put money to work into equities. Divergences are setting up nicely in both indicating weakness in momentum. Watching to see how bonds and gold react early in the week. We have been getting great signals for some time now watching bonds and gold and we don’t see this changing. Any weakness in bonds (TLT) or gold (GLD) we more than likely will see an inverse reaction in the equities market. If there is any pullback in equities we will like to see 1386 hold.
$GDX is looking to find lower levels. It looks to be weak for some time. Shorting on any bounce.
The dollar looks like it wants to reverse soon. Watch $UUP as it wants to gravitate toward 22. Keep an eye on this level to see any rejection. If it fails then lower levels are in store. $IYR may take a breather hear, not looking to get much more out of it till it sets itself back up for a buy. $61.46 would be a good target for any pullback, we will revisit this at that time. $BRCM is not looking strong as it is struggling to push past its resistance. $GOOG will follow whichever direction it breaks out of here. Unfortunately, my money is on the downside. Crude oil isn’t looking very strong, look for a pullback with first support level at 103.30. I see POT coming in a bit providing a buying opportunity. Longer term agriculture looks very good in the second quarter. Adding $IPI, $POT, $MON to list. $POT on pullback looks great, should see it come in before going higher.