Looks like we are nearing an important change in the markets! I have said since early june that I felt that the charts were gearing up for a big move down late August early Sept. (after Labor Day) We we are very close and longer term (month of Sept) am gathering short set ups for the Wave 3 down. The next couple of day we should have some upward bullish activity to finish off some indicators that need to confirm the down move. I am looking for the Macd Histogram to move above the Zero line and make a lower high triple m pattern and that will be my signal to really load up on shorts.
I have done a video to show you on the SPX. Like I mentioned in my video I will look @ October options this coming week as we now are under 30 days till Sept OPX. I will hold my spreads as with spreads you want theta to work on your further OTM (out of the money)
Gold had inverted head-and-shoulder pattern starting January of this year and
ending in March. This pattern captures the increase in bullishness as
market trends recover. The chart pattern target of $1,250 was achieved
in June. The pullback from this pattern target found support near $1,160
Gold is built on demand and supply, but its
movement is driven by psychological factors. This is seen in the variety
of psychologically based patterns in the gold behavior. The first of
the these was the straight shoot up that developed between March and
December of 2009.Gold is also know as the fear trade and when the economy appears to either doing a double dip or what I believe is that we never came out of the first recession, the only growth we had I call "Faux Growth" was supported by Government stimulus. I truly believe that by the time this next Wave down finishes and the mid-terms are near, that another stimulus will be being put out and that Obama will pull out his trump card...and will extend the Bush tax cuts to try and keep the Democrats in control. This should really pump up the markets and give us that wave 4 up. .
China has been buying gold and that it has become easier for people to
buy gold. The World Gold Council estimates China produced 313 tons of
gold in 2009 but demand is expected to be more than 420 tons and you know when demand outweighs supply prices go up.
We are overbought on the daily gold, so any pull back is a buying opportunity. Silver same page.
