Saturday, May 12, 2007


All intermediate tops so far have been accompanied by divergences in momentum and money flows. That's not to say that this time won't be different and that the market couldn't just fall apart next week. However since no one has a crystal ball the best we can do is see what has happened in the past and plan accordingly. Right now the odds are saying that this rally still has a ways to go. The COT is also saying in no uncertain terms that this rally still has a lot of legs left.