april 26 2007
I think we are ½% away from a market top, and then the market pullsback 500 points. I didn’t think i could keep buying on the dips forever. And now it seem I have to concern myself with XLE, only in this case IYE topping at the same time the market tops. Does this happen a lot. It happens everytime as far as I know. Last time gold stocks signaled the China sell off. This time IYE, is signaling.


finally, all that percent price channel met, talk , i talk about might pay off. bigtime. IYE clearly went up 20 points, last cycle. 87 up to 107. This time IYE is climbing 93 up to 113. That’s 20 points , too. I still need 1.4 more points to reach 113. and after that, well the show is over. Usually xle is down on Fri. and up on Mon. I think Monday, IYE makes 113, and then the risk of buying simply on the dips becomes too great.

I’ve showed on the DIA, the overbought territory, which coincides perfectly with the IYE and DIA connectivity. I’m also showing one possible scenario, when the DIA dropped 500 in a couple or three weeks, a long long time ago. I hope I don't get another 400 down in one day. (doubtful.)
zee