1. Markets are selling off today. This is actually good to see and welcomed after the huge rally that we just had. Pullbacks are healthy in order for the charts to continue to keep the current up-trend. Remember, parabolic moves are ending moves.
2. JP Morgan, financials, airlines, retail are down. Tech is all up today and they’re gaining as we speak. This tells us that it’s simply a pullback. We’ve gone over levels that Nick didn’t think would be achieved this quickly.
3. Nick isn’t seeing us going down to the March lows. It would be very difficult to go down to the March lows. Another buying opportunity is on its way. We have an overbought condition. S&P hit 3233 yesterday. Time to digest.
4. Gold is up and silver is flat. Silver has had a huge move and needs to work off the overbought condition. Sideways pattern, waiting for a consolidation base. A welcome pause and ultimately headed higher.
5. Nick closed out BP and Oracle positions yesterday. Hotels and airlines are down. They’ll be forming patterns for re-entry. McDonalds holding tight over 200 and still has half a position in it.
6. Watch the charts!