My interest has flagged somewhat, as I spend more time lately golfing and such. It's a long winter not far off and there will be plenty of time to read charts by the fire. -g
I continue to favour that we rally for a while yet. I continue to favour that it is a bear market rally. Here's the key: if the market goes up next week I need to be long, as it is quite possible, as is always the case, that I am wrong and the rally extends for months instead of a couple of weeks. If one is long, one can just follow it with intelligently placed stops and let the market do the rest.
If I am right, and this is a bear market rally in the "big C" scenario, we are just ahead of the best shorting opportunity in your life time. The meat of such a move should coincide with the takeoff in gold, as the ongoing gold descent will have ended in August I figure.
Let's work this s-t bullish, l-t bearish scenario from the inside out, starting with the wiggles and moving to a monthly. We'll look at the Nasdaq Composite, which has been stronger than the Nasdaq 100 of late. First, the 90min chart:
Here we show the shot out of the hole as the 'A' wave, then an a-b-c running flat, with the powerful 'C' up just starting. You wanna be long if price works its way up to that 2325 level. The entire A-B-C correction shown above in blue, is shown again below within the context of a daily chart:
Here we show the May high as the top of wave '2'. The current A-B-C would be a '(ii) of 3', and we know what comes after that!
Finally, within the context of the "big C", we see how things are only just getting under way:
You know, I do not want this to happen. I would rather that we just had prices grinding higher at 7%/year and I could watch the magical compounding of my retirement money.
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