We closed out a very profitable trade yesterday from shorting the open Monday to closing that short at the close Tuesday. That short represented 53 SPX points or 5.6% in 2 days. If we factor in the Direxion Bear 2.5X ETF that would amount to a whopping 14% in 2 days placing our Direxion trading up to a 91% gain since Oct 20.
Today our VST (very short term) model turns bullish and looks to be counter trend (the trend right now being down on the ST, IT, and LT). Cycles suggest a VST bottom today followed by an attempt to trade higher over the next couple of days. How high is anybody's guess but my best guess is back up to the 952 area or perhaps even into the 967 area SPX.
Our gold mining model is still in cash waiting for a better entry. I'm thinking GDX could go back up to the 24 area setting up a double top and a short (for those so inclined).
We use Elliott Wave, cycles as well as technical, and sentiment in order to determine the direction of the Stock Market and Gold Mining Share Market. Trades verified by Timer Trac and trade the close each day. Gold trades track Profunds/RYDEX/XAU mining shares and not bullion. Weekend blog is for the longer term outlook and review of the week. Please support the Welcome Home International Foundation (below) and help yourself by getting your own My Power Mall. Please pass this blog on to others.
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