After the 50 basis point rate cut today the market closed mostly flat. The Asian markets followed through with a HUGE rally.

The US dollar is falling again which is good for gold. Below is a chart of the Gold ETF (GLD) which is 10% of the spot price of gold. My target is $85 then to $92.

What amazing action today……I do believe that we will see another one of these days. I am guessing a 2000 point move in the $DJI.

I am long DGP, RGLD, HMY, DIG, RIO, X, SSO, DDM, FCX, PCU, MA, BIDU, SINA and GS. I am also bearish on the US Dollar which is why I think commodities are going back up and why I like gold and oil stocks.

I had a great buy on Goldman(GS) this morning when it was down -10% but the market was up. I just had a feeling the down pressure was a fake and bought at $84 and today it closed at $93.57. An almost $10 gain. Look at the green buy zone and my sell target is $130 range.

Will the DIA break into $90 then pull back then climb up to $100? What do you think?

I still feel that we have hit the bottom for now. Even though price keeps coming down the volume lightens up. Today we saw massive selling in Asia but now they bounced back up.

As I write this the futures are up the Dow +285 and S&P +34. If we get a pull back tomorrow and go under the lows and close high that’s a really bullish sign.

I think we have hit the bottom this year. Today with the MASSIVE down ticks the US index futures and Asia down almost 10% across the volume was still lighter coming down. Look at the numbers below from Yahoo Finance. This holds well for the bulls out there. I am long QLD, SSO, DIG, DGP and short on UUP.

The US Dollar Index looks toppy against the EURO. Below is a chart of the UUP which is the long US Dollar ETF. As you can see there is big volume at the low and we are going to higher highs on lighter volume. I went short this ETF by buying Dec PUTS. If this holds true then commodities will go up like gold, steel and oil.

Below is a chart of the DIG (Ultralong Oil & Gas ETF) I put in a buy order at $25.75 looking to go to $40.

All gains above 10% today except for GLD…not bad. Like I said in my last posting the market will head up this week as investors come back in for bottom picking in the oversold market.

A reader asked about DRYS and JASO which I think look like good buys. Of the two I like DRYS better on a technical basis for a trade. For a solar play I like ESLR better on a technical basis. ESLR is a buy here around 3.40 and wants to head up to $5 then $6.50.

DRYS has good support $20-22 and should bounce up to $40 then to $60 longer term.

I suspect that this week will be an up week. We have hit temporary lows with massive short covering and margin calls galore. We are extremely oversold here and time for a bounce up.

Look at the SPY below which is a 1 year weekly chart. Last week we went to test the low but did no break it on lighter volume. We closed above the open of the week which is bullish. I think were going to up to $105 on the SPY. I am long the SSO currently

Below is a 1 year weekly chart of the GLD (gold ETF that is 10% of the spot price of gold). Last week went went lower to test 9/15 lows, went down on lighter volume (which mean less sellers) and closed above the open. This is bullish which is why I am bullish on gold and buying more of the DGP (Ultralong gold ETF)

I am also long on UWM, DDM, SSO, MOS, DGP, QLD, UYG, UYM and now DIG (I think oil is heading up again).

I closed my shorts except the GS with my stop at 115 and entered into SSO this afternoon when I placed a limit order that paid off well. The SPY (ETF for S&P 500) went lower today into the bar of Oct 10 the big sell off day and closed above that and yesterdays close on higher volume. This is very bullish for the short term. I still think the trend is down but I’m playing the big bounces and falls.

I entered limit order for UWM, QLD, UYG, RRI (trying this again) and UYM.

My timing has been great these last 2 days. My DUG is up 30% and SDS is up 17%. Like I said yesterday watch the SPY and it did break the $95 support and came crashing down to close at $90.02. I have placed a sell in both SDS (115-120) and DUG (73-76) near the last swings.

APWR collapsed today down 24% but I placed my stop and only lost 3%. Always place stops in this has saved me so many times!!!!

Both Nikkei closed -11% and Hang Seng down -7% on Oct 16. This will pull the market down a little more. I also placed long buys on SSO and QLD near the lows of Friday with stops just below hoping this is a temporary bottom and playing for a bounce up.