The X weekly chart has all the ingredients for a low besides losing over 80% value (which basically does not qualify - as we saw with Lehman) it made a weekly and daily 13. As the CRB is about to bottom out and see a relief rally shortly, this might be one of the stocks to trade as wave 3 is ending and wave 4 if it makes 25% of 145 points back which is 36 points up to 63. We put this stock on our radar screen as well. The infrastructure plays as the Obama administration will trigger programs to buy bridges and new streets will benefit from these sorts of companies as the announcements will come.Markets had a volatile day ending sharply lower as Hedge Funds used higher levels to sell positions to gather liquidity for upcoming redemptions. A Fund (Fortress) claimed that 25% was redeemed as tomorrow has deadline puts more pressure on funds as more money gets pulled out. After all we expected that and still next week should have an upside bias towards the expiration
but basically we closed lower on a weekly basis increasing the negative momentum and confirming my basic assumption that a capitulation is still due. Futures even closed substantially below cash, which is a little desperation signal for the brave ones who went long yesterday on this 'reversal' idea.
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