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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: pz who wrote (123933)	9/1/2009 11:20:16 PM
From: Sweet Ol	2 Recommendations Read Replies (2) \| Respond to of 206336

I stirred up the goat entrails and perceived some E-Waves. They say that it is highly likely that wave c of the a-b-c bear market correction ended Friday. If this holds it should take out the March bottom by quite a bit. A less probable, but possible alternative scenario is that this is just a correction in the C wave. If so, there will be more rally left before the big kahuna starts down. Two days is not a lot to go on, but is sure looks to me like we are in for a long ride down. You can see in the weekly chart below that the big A-B-C correction started in 2007 when a wave 5 ended. The A wave bottomed in March and the B wave is a 3-part wave with wave c just ended (I think). The C wave down will take us below 6000 on the Dow. stockcharts.com The correction came very close to the 38.2% point - close enough for government work. I am still mostly cash with a little bit of DXD and SKF. I shorted C, SBUX and DHI with tight stops that stopped out. Note the red support line for the correction. If the DOW takes out the line, at about 9000, then I will go all in on the dark side. It is worth noting the relationship of C waves to A waves. It is common for them to be about the same length or only 62.8% of A. However, C wave are usually very strong (like a 3 wave) so the most frequent length for the C wave is 62.8% longer than the A wave. It is amazing how often these fib values come into play. When I consult the goat entrails about POO and NG all I see is a bloody mess. I slightly lean towards POO going up, but I don't feel strongly about it. NG looks to need a few more down days before it bottoms out. But I don't have a dime on either one of them. One last thought. The sentiment indicators last week exceeded the bullish level of 2007 when the bull market ended. This is exactly what you expect at the end of a bear market rally. Everybody and his brother is talking about green shoots, housing starts and other indicators of bullishness. Individual investors are coming back in the market just like they always do at the top of rallies. The sheep always get sheared. BDBBR and Mish's thread seem to be the only place where rational thoughts are expressed. Remember, a rational thought is one that I agree with<ggg>. Think about your strategy for the dark side. If this is not it, it won't be a long time coming. Best to all, JRH