Transcendental Market Fragments:
Gold:
Currently, the market is likely to be moving toward USD $700 an ounce target for the end of wave TWO. (Major Wave ONE up was from $256 to $1,015.)
If this target works out, the period at some time following this coming July could see an explosive wave THREE start (to $3500 an ounce). And, it would not have to reach the 700 target price, either, since that was already seen at the end of wave A. In other words, this TWO could be an irregular correction. If the 700 target is reached, it would be likely to occur in October.
The Market:
Yesterday's oversold rally was weak. Chances are that the Market is going to see a jerky uptrend from here, with extreme risk for bears to remain short. That's because the mark-to-market rule may be abandoned and that could lead the financial stocks to rebound on the order of tens or hundreds of percentage points in a short-covering rally.
Money flow has been poor this week. Although it was positive on Wednesday, it was only 49.39 million dollars positive in the Dow. That leaves the net money flow this week (and month) for the Dow at a net deficit of 609.05 million.
NDX:
A substantial accumulation pattern points toward upside resolution.
Long Term Investors:
Although it may be a rocky road, accumulating shares at these levels is still favored for longer time-horizon investors (up to the age of 40). This market is reasonably cheap, offers good value and is poised to return on average a minimum of 10% a year for the next 15-20 years.
Short Term Traders:
Keep close tabs and use stops. There is tremendous risk that this Market may become dirt cheap.
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