pay attention or pay the offer

There are some questions among the comments that can benefit from explanation. But  first, let’s look at the current health of the market.

Where will the eMini futures encounter resistance during this rally?

Whenever markets become clearly emotional, that’s the time to turn to the Spiral Calendar to look for possible time windows that may mark the climax of the emotional state. There’s an obvious candidate on the horizon right now.

here’s some comments on the nature of today’s decline.

I think the markets are trying to tell us something. Let’s start with reprinting a chart I ran on January 22. This will help keep us focused on the big picture.

One of the approaches I use here at pay attention… is to utilize a set of four indicator signals; net-lines, range-bust reversals, RSI divergence and the cycle-trap to help spot trend changes and/or expected movement.  I show charts when a few of these signals show up.  On Thursday, I noted the existence of two negative signals in the bond futures. On Monday I updated that with another negative signal. Today, the bonds are down 1 and 3/32, and the cycle-trap has now chimed in with a fourth signal tonght.

That is how this stuff works!!

click chart to enlarge

Gold moved higher today following that net-line buy signal issued yesterday. Two more markets had net-line signals today.

With two days of strong rally behind the market – there are some short-term levels worth watching that ought to give clues as to whether prices can continue to press higher this week.

Interesting developments in bond gold and bonds today.

I think the point most people miss is that the lunar cycle is a clock!

The first month of 2010 is in the books. The big picture outlook for a dollar rally and simultaneous stock market decline is looking accurate so far.

There’s a bit of a winter storm headed my way.  I’ll post these charts now, and hopefully have a more comprehensive set to look at on Sunday.