I hope every had a good weekend. It was a bit sad for me as I keep seeing images of our wildfife/eco system continue to die and suffer. If you have a chance to watch Dateline that was aired on Friday night, it is a step by step outline of what has happened and will continue to happen if things are not taken under control! Our very survival depends on the action of BP and our government, and so far has been lnot what I expected. A grade I would give BP is a "F" for Failure to prevent the disaster and how they handled the event, and the administration a "C" because they are not taking it seriously enough and moving fast enough to clean up the mess. BP in my estimation will not exist when all is said and done, they will have to be sold off into pieces as if they are found negligent (as I know they are) there is NO cap on liability for BP and not only the clean up but the PSYCHE of the US public and law suits, will not enable these thieves and crooks to continue to exist and will be wiped out.
Now on the the Markets again there are two scenarios that could play out again and again I am positioned in a way that I will make money for my subs and myself.
The SPX still has a chance to rally this week, if you watch the video the H&S daily is still in play and we have a rectangle (or sideways/basing) that could rally up for form the right shoulder to head to about 1150, then failing and falling hard to new lows for the year. The second scenario could be we flush out retest the 1044 area then head up to finish the right should to 1150. The are a few EWTheorists that say we have formed the right shoulder and we could head down to new lows from here, but according to my count we should fluish out 1040 area, then work off some extremely oversold indicators. The daily stochs on SPX shows we are pointing down and have some room to head lower.
The EUR/USD is due also for a bounce before heading lower. We could see 118.47 before bouncing or bounce the around 128 or so, then head for lower lows!
I am still long Gold as it's a hedge and a Head to safety play but make no mistake if this is P3 that is playing out now, then once the liquidation begins there will be almost no safe haven.. God Help us All. Love and Peace Anna
