As predicted Phi turn date hits exactly on 5/7. Ended my ZG long buys (Gold Futures) with 3 seperate lots over the past 2 weeks with average in at 871. Still holding my DIA puts, should be getting those back to the profit area in the next few weeks imho. Gas is KILLING everyone around the country and we hit new highs again today, food prices way up etc.. people are miserable, this is not over. I am in a great position to cash in when Gold rebounds strongly again as the flight to quality begins and inflation yells "Fire". I already smell the smoke. Here is a sober opinion of todays action. (as a side note, these polititians make me sick. Gas holiday????? WTF is that,we need solutions for long term economic growth and the health of our country. They are all pathetic. Solutions = supply,our OWN and addded refinery capabilities.) Off the soapbox, now this will sober anyone up.
here is a recap of Wednesday's market action:
One would expect that a wave iii down would start with a bang, as wave threes are the most dramatic moves, and with Wednesday being the start of our scheduled phi mate turn date window, Wednesday's 200 point plunge in the Dow Industrials surely suggests the top is in and wave iii down has started. We have been suggesting for the past few weeks that we expected a top this week, and that appears to be the case. Key now is to watch the quality of the decline. Should new lows arrive, below the January lows, this stock market is in deep trouble, with a downside target below 10,000 for the Industrials. Wednesday also saw the large price move that Friday's small move in the McClellan Oscillator was suggesting would arrive within a few days.
Wednesday saw several of our key trend-finder indicators generate new "sell" signals. The NDX experienced a panic-selling 90 percent down day, which usually appear at the end of declining trends, or in this case, more likely, at the beginning.
We see tops occurring now in stocks and the Dollar, and bottoms in precious metals, and Bonds. Oil closed at another new all-time high again on Wednesday.
The Dow Industrials plunged 206.48 points to 12,814.35 Wednesday. The NASDAQ 100 fell 39.19 points Wednesday, closing at 1,951.42. The Russell 2000 fell 13.58 points Wednesday, closing at 716.21. The HUI Amex Gold Bugs Index fell 6.29 points, closing at 407.49. Gold closed lower at 869.6, inside an accumulation opportunity short-term. Silver fell to 16.62, and Oil closed at another new all-time high at 123.76. The Dollar rose 0.49 to 73.49, pausing along its journey toward the sixties, then eventually the 40's. Bonds rose a third of a point to 115^24. The PPT has to buy the long end to keep Bonds headed in the right direction, to support the housing market, unless a stock market collapse continues. The VIX rose sharply, up 1.52 to 19.20.
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