The New CS Board

[ahimsak]

I still see another drop to 149 on gld before covering my latest hedge put on last week, after I had covered the july calls.

I also have been wrong about the last drop, and missed too many rallies, but have also missed losing money being invested too soon.

Bottom line: Market is overbought short term, and the pattern suggests another drop to spx 1220-1300 before a final rally for the bull market begins. My gut is we need a 2 day selling climax before it is time to buy.

Last, vix over 35 and could be time to buy, and at 45, buy, buy, buy. Only time you would have lost money doing that was in 1987 and 2008, but those situations were once in a lifetime, though with insanity of financial world, could happen again. Oh, and if you had bought back then and held a year, you would have made money.