Russell 2000

Now is the time that tests all traders, both bull and bear.  We are in a narrow range within a primary 2 wave up.  Have we seen the high? I thought so, however, even a bear such as myself is having doubts.  I think the best course of action is to play the range, until a the market picks a direction.

Looking at gold I am reminded of the original black Friday (Sep 24 1869)  and am thinking of shorting gold this friday.

Russell

Okay so here we go again.   $RUT didn’t quite hit 585, however it was close enough for goverment work (No Pun intended for any PPT workers).  On Monday I expect 1 of the following scenarior to happen:

(1) Retest 585 and then head on down to 550ish again.

(2) gap down and keep going down

(3) Break thru 585 and head for 597

My preferred option is (1) Retest 585, fail and then dive lower.

Last night I thought 576 was going to hold as the high on the Russell 2000 ($RUT).  That didnt hold out and we hit over 580 – as per my initial guess.  As the old saying goes: “Some days you are the dog and some days you are the fire hydrant” – Today I feel very wet.  On the positive side I closed my TZA when RUT was in the 550′s and only started stepping in yesterday – I added some more at the close today, however I am still heavy in cash and will by getting more TZA tommorrow  if we hit 585 and then close under 580.   $RUT chart updated is….

$RUT