Markets Close Up 10% On Big Rally...Dollar Falls

Talk about a day. The markets opened up strong then sold off during the middle of the day, just to make a huge (again I say huge!) move before the close. With the S&P closing up nearly 11% on the day, the charts show so much information. First, we opened at recent low levels and held tight. Second, the candle pattern shows a very large bullish engulfing pattern. And third, our big strategy for gold, oil, and the dollar are really starting to move in the right direction.



As you can see, OIH (of which I hold a long position) made a very nice hammer type candle today. Moreover, we successfully tested both the Fib retracement and Fib fan levels. From here, I am looking for this to definitely make the move to the 110 level or higher.



Tomorrow is the widely anticipated Feb meeting on interest rates. According the the futures, there is pretty much a consensus that there will be at least a 50 bps cut in the fed funds rate. It should make for some more volatile trading so stay strong and update your stops. See you tomorrow morning!