Nov 10 Pre-Market Comments

The gap up opening scenario I was looking for early this morning is coming to fruition as the futures are pointing to a strong opening. My minimum upside of 10 points look like is going to be exceeded on the SPX as we look forward to a move to perhaps the 955/56 area, which happens to be the 50% retracement area of the last wave down from Tues/Thurs last week (as some had noted on Traders-Talk this weekend).

That down wave, which I call wave 'a' of an a-b-c down move, was 107 points long. A similar wave 'c' from the current projection of 955/56 would place the next low somewhere between 848/849 in the coming days and fullfill the Equality of Waves Principle.

Targets are only that: targets. Timing is more important in my work. If the market gives us a higher point to short, that is only better for us. The wave -c- of this current wave 'b' (which we are now in) looks to run 1.5 X wave -a- of 'b', a perfect Fib relationship.

Our Timer Trac model went to cash on the close of the stock market and is shorting early strength this morning. Since October 20, my Timer Trac stock market trading model using the 2.5 Direxion ETF on the Nasdaq is up 67.66%. The GDX gold mining model is up about 28%.

Ideally, we should see a low in place over the next few days. A more perfect scenario would have that low tag Tuesday and a top on Thursday based on the full moon cycle. Based on cycle-time relationships to e-wave equalities, that could be skewed a bit and we could instead see a Wed-Fri rally, it remains to be seen.

The mining shares should have some strength today and GDX 23 would not surprise me. Ideally, the 4 day cycle does not top until early Tuesday, but the 4 day cycle can be off 1 day. I still expect a retest of the high set last week (over 24) sometime either late this week or early the next and then a strong pull back next week that should set us up for a stronger move up into later December.