Looks like a little selling on the open. The 4 day cycle +/- one day is due to top this morning. The larger 8 day cycle is due to top later today +/- 2 days. The larger 16 day cycle is due to top around Thanksgiving. I was looking for an 800+ point Dow rally yesterday and boy did we get it off the bottom!
Gold looks strong today. We are long in all models including gold mining shares since the the PM NAV Wednesday close. Our Direxion ETF NASDAQ 100 bull/bear 2.5x fund was +76% as of the close Wednesday (since Oct 20, 2008). Yesterday's push higher puts that closer to +121% I believe! It has yet to be verified by Timer Trac as they have not yet updated.
Any selling should be bought, and I see nothing but higher prices ahead for now. The daily MOM indicators did not qualify the run down to SPX 820 suggesting a nice run here is likely into the end of the month.
What would make me change my mind? If we went up too fast here over the next day or 2 and hit the 980+ level too quickly. That might make me rethink the timeframe.
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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