UPDATE

Just a quick update. The market did rally strong today, but on very light volume. This type of price action is usually very bearish. With the market now up quite a bit from the October 4th low, we might get a pull back in the next day or two. This possible pull back should be a "B" wave in a bearish ABC pattern. I wouldn't try to trade that move down unless there is big volume behind it. If there is big volume behind it, it wouldn't be a "B" wave....but rather the possible start of a bigger move down. If we sell off on average volume within the next few days, we should then make another push for that 1227 to 1228 area on the S&P 500. Keep in mind that we could drop 60 points on the S&P 500 (600 points on the Dow) and still only retrace this latest move up by 50%. We could see some wild swings over the next few days or weeks. I'd stay mostly in cash until a clearer trading environment emerges. If the market starts to chop back and forth, you can end up losing a lot of the money you made over the last few weeks...especially if you are on the wrong side of those swings. I don't like the price movement in silver over the last week. We had a big rally in the market and silver didn't move up much. It is beginning to look like it will make another move down soon. The longer it takes to make a significant move up, the higher the probability that it will move lower.