Cycle turns

We were out for most of last week. As for our positions, we got stopped out of tso for a 3% loss. But we also managed to book some profits on the SPY short. Now lets gets back to the future :-)

We have been mentioning there are some short term cycles turning up on May 25. So here we are, we made the nominal high on may 18th and it has been downhill since then. The 60 day cycle ends on may 30. We have another important date on jun 11th.

If we get another boost up, depends all on this time frame. We need to hold the key 8000 area on the dow by june 11th, worst case. Tomorrow is an important day to watch too. 25th may is seasonally one of the most bullish days in an year. So things are bound to be volatile.

Clues from the bond market - TLT looks to be bottoming or will do so soon, so also the dollar. The negative sentiment is clearly peaking. But we will wait for confirmations before putting on these trades. We got blown out of our gold short. Until we understand things better in the PM sector, we will stay away.