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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.


* If the dots don't connect, gather more dots until they do...or, just follow the $$$...





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Tuesday, May 10, 2011

How Sweet is Cash?...

Based on recent action of the intraday tape on TF, as well as YM, ES & NQ, I would venture to say that should these markets continue to rally and break above their last respective swing highs on the Daily charts, and should they fall back to retest this latest push upwards since last Thursday, then unless ALL of the levels (horizontal while lines) shown on the 30 min chart grid below are not breached, then a bona fide continued rally on a Daily timeframe is possible. However, if they are breached, it is my view that investors' money is best held in cash for awhile. In any event, I believe that ALL of these levels (and possibly even lower to Thursday's low) should be retested regardless of what happens. I would also add that the last Daily swing low on Gold, Silver, Copper and Oil should be retested thoroughly before any further serious "buying and holding" is done, particularly if hedging is the purpose against a potential turn in the Daily uptrend of the equities market.

I appreciate that my observations are limited to my experience in the markets to date; however, this is the best conclusion that I have to present at the moment. I will continue to monitor and daytrade the TF based on what I see and update my conclusions accordingly.