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.

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