Wednesday, September 3, 2008
RedDirt's Weekly Update
Looks like the the MOOSE has finally made a switch!!! William Dirlam warned that all the green horned moose followers should take a step back and read the Art of the Switch. I couldn't agree more. The uptrend in bonds seems somewhat suspect to say the least. Mostly due to the fall in commodities and the lack of performance in equities, somehow the bond market is drawing some attention. Volume for the TLT is my big hang-up. Not very convincing for a great trade. But, I won't argue with the Moose diagnostics when it comes to money flows to certain asset classes. Bill's program, experience and record speak for themselves. So, WHO the hell am I to question this switch. My job is to figure out the WHEN and the WHERE to place an order to take advantage of this MOOSECALL. Is it really worth the time to to consider a trade? Maybe so, with the FED CHECK at Stand Pat and commodities trending down, could the World be taking notice that the good faith of America to pay interest on this enormous debt be real.Maybe we should take a look at the YIELD CURVE and observe the steepness of that curve to help deduce the amplitude of just what could be about to occur. Could a flattening be about to happen from the steep angle we currently see. Maybe it's a good time to look at John Murphy's Intermarket PerfChart. Murphy explains the Inverse and Positive relationships between the four majors, Stocks,Bonds,Commodities and Cash. This should help in determining an entry point to the MooseCall. Be Patient. Take some time to study the relationships amongst the 4.
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Just incase you have some time for extra study this week. Read this STORY to catch some insight to what the "f" is going on here in the good ol' USA.
Labels: commodities, decisionmoose, technical analysis, weekly update
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