The Correction That Was, Didn't...

Mike Turner |

You will see from my CrossOver Oscillator later in this report, a correction could be imminent. But, I can wait no longer... the time-cycle forecasts tell me it is full steam ahead and if there is a correction, it will be mild. Risk remains high that a correction or pause in the unrelenting move higher in the market will occur this week or next. I am willing to take my chances on the long side for now.

As you can see from the SPY forecast, below, the S&P 500 is expected to move higher for about another month before pulling back.

  • Two of the index forecasts show a down week this week and two show an up week. I am trying to get as much money into the market as possible, but am hedging my positions with short call trades. This is just another way of saying that I am selling weekly covered calls. I am long the stock and short the call. I hope to be able to send out some CycleProphet trades in the morning.
  • We have a conflict with gold/silver... both GLD and SLV show a move up this week, but the futures forecast for both gold and silver show a down week. This means I am not opening any new positions in either.
  • With the current Obama 3-part plan entitled, "No quick fix!" for oil (Part 1: No Drill, Part 2: No Drill, Part 3: No Drill) and with the saber rattling in the Middle-East, it is entirely likely that oil will continue to climb. Both the futures forecast for crude oil and the XLE show a pull-back this week. I am looking for a slight move lower in oil, but just for the next week or so. I like USO on a pull-back as a Core Target covered call.
  • The US Dollar could gain some strength over the next 8 days or so, but then weakens and maybe dramatically so for the next 90 days according to the time-cycle forecast for the EUR-USD currency pair.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CIG:CA Colliers International Group Inc. Subordinate Voti n/a n/a n/a n/a

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