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Notice the following on the weekly chart:
-- Prices are at or near their lowest level in three years
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
BUT
-- The RSI is oversold, and
-- The MACD is oversold
Notice the following on the daily chart:
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
-- Prices have been dropping for nearly 5 months
BUT
-- The MACD is rising and
-- the RSI is bordering on oversold territory
Bottom line: The market is technically oversold and wants to rally
2 comments:
A more fundamentalist point of view; Jimmy Rogers notes that credit and cash shortages such as no loans to farmers and mine owners are creating a supply shortage which will lead to increase in prices
Bonddad,
BTW I've been a fan for a long time.
I have this idea that I have been kicking around that I would like to share with you.
I believe a carbon tax is a good way to bring to light the "hidden" economic costs of carbon dioxide pollution and to use a "capitalistic" philosophy for a larger good. However, new taxes are often a political non-starter.
What I propose is a "carbon rebate" where all of the revenues from the carbon tax are returned to the American people as a quarterly per capita check.
Better yet pay it forward by estimating the revenues and rebating the money before it is collected. This would provide an economic stimulus and a means for individuals to pay for the increased costs.
Please let me know what you think.
Jim Bartow
hangum333@yahoo.com
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