Monday Update

My system moved higher on Friday to +1225 putting on a confirmed buy signal and then moved higher today to +1325 keeping the buy signal on. I actually added some more XHB, KBH, and RYL in the first half hour this morning thinking that the 10% correction in the $HGX from 98 to 89 was enough to start buying again. Little did I know that this was all I was going to be able to purchase before the market took off. I expect that after 100 is eventually broken in the $HGX, that there will be a dip back into this 89-98 level. After it goes back up again, I would still expect 1 to 2 more tests of the 100 level. I believe the whole process will take around two months. Basically, it is best to buy under 100 or close to it as my target of 120-150 still stands. Since this Friday's trading will incorporate both the jobs report and the stress test results, it will be interesting to see if Tuesday through Thursday will be a buy the rumor type of market or a wait-and-see market after today's gains. Until tomorrow...