An Inside Day

Today was an inside day.

Inside days are found when the day's trading range is less than the previous day. Yesterday, the S&P 500 Index opened @ 1257.62. That was the low for the day. The high was 1276.17 and the close was 1271.87. So, yesterday's trading range was between 1257.62 and 1276.17. That's 18.55 points.

Today, the Index opened @ 1272.95. The high was 1274.12. The low was 1262.66. The close was 1270.20. Notice how the entire trading range today was contained within the range of yesterday's trading range. This condition suggests that today was a day of indecision in the market. It also gives us a hint as to what the future may hold. Usually, savvy traders will presume that an explosive price action is on the horizon. Now, we don't know whether the price action will be up or down. We just know that today's indecision will be resolved in an explosive fashion.

I think that we will go higher within the next day or two. Resistance lies @ 1292. 1292 is important and substantial resistance for several reasons. First, the inside day breakout should lead to price action ending @ 1292 (1274 + 18 = 1292). Second, the five-wave Elliott Wave in play since the July 1, 2010 bottom targets the 1292 area as a top. Third, I believe that the powers that be that utilize supercomputers have programmed this area for selling. See my earlier posting on "If I Were A Supercomputer."

For these reasons, I believe that 1292 is in our immediate future this week. And 1292 should prove to be a top leading to a tradeable correction.

***********

Macro Thinking

While this blog is for TSP investing, I suspect that many readers have accounts outside of TSP. I believe that precious metals, silver, gold, commodities, cash and bonds will offer superior opportunities for the rest of this decade. We are in an economic winter where alot of debt has to be wrung out of the system. If the Federal Reserve continues to print money, then their printing of money will simply devalue the U.S. Dollar and increase the value of hard assets that cannot be debased like cotton, cooper, and rare earth elements.

Consider that the S&P 500 Index was up 12.8% for the year while gold was up 35%, cotton was up 90%, and some rare earth elements were up over 1,000% for the year. So, give some consideration to hard assets as this decade progresses. Ian Gordon is an investment guy that I follow. He was urging readers to buy gold back in 2000 and he has been dead on right for the past 10 years.

Have a good evening!

Standard Disclaimers
1. This blog is for educational purposes only.
2. None of the individuals associated with the Las Vegas TSP Investment Club are registered financial advisors.
3. This blog is not an offer to the public to buy or sell any stocks, options, commodities or futures.
4. You are encouraged to do your own due diligence and to consult with a professional financial advisor before making any investment decision.
5. This blog cannot take responsibility for the results of your investment and trading decisions.