Market Update

Just a quick update on my thoughts.

• Equity market averages have been consolidating.  The Dow Jones Industrial Average looks like it is in a tight trading range of about 300 points.  Look out when it breaks either way.
• On this post from December 3, 2009, I reported that Gold was just about as overbought as it could be and I was looking for a short-term target of $108 based on the Gold ETF with the trading symbol GLD.  It has hit that target and even a little more.  (Note that on that previous post, it appears that the link I inserted for the GLD chart updates every day so to know what the chart looked like on December 3, 2009, you would need to look at an archived chart. It looks like GLD is now consolidating nicely and it may be able to make a move in the next week or two.
• The Crude Oil ETC (USO) appears to be short-term overbought.  The risk/reward appears to be favorable to enter a position where you would benefit from a downward movement. I am not doing anything at this point. If the market moved another 5 percent higher, it seems like it would be even more likely to fall.