When I write that “All that matters is the present moment”, I refer to one’s own personal happiness and the present moment of what is happening in the market tick by tick. One can always choose what happens to oneself in the present moment and that is why all that matters is the present moment. If you are always thinking about the future, or dwelling on the past, you forget where you are now. NOW. Where you are now is what matters. What you do now is what counts. Life happens in the now, in the present moment. That is why they say love is what you do for someone else now, on a daily basis, being there in the present moment for another person. Love is not, ok, I will do this for you one year from now, or ten years from now, etc, but I will not be with you now. 🙂 It is what you choose to do now that matters in life. Does that make sense? You have to love what you do now in order to want to do it again tomorrow. Doing what you love now helps make a life-long career.

What happens on the tape on a daily, to hourly, to minute-by-minute, to every second is at least to me, what matters when it comes to entering or exiting a trade. Personally, that is how I trade. Trading happens in the present moment. Yes, you needs some future perspective, and some past knowledge, but trading happens in the now.

Now, I love history. I find history fascinating, and yes I believe that understanding history is very useful to having perspective on the grander scheme of all things market, politics, science, psychology, technology, etc. Legal decisions are usually made on precedent. I personally spent many hundreds of hours researching legal precedent to write some memo on how a judge ought to apply legal precedent to a certain set of factual circumstances. I see similarities in how one could look at historical events and extract the parts that benefitted society and apply those same principles to today’s factual circumstances and then expect a particular outcome.

Some people may misunderstand my tagline.

8:33 am PST. My wave count for HYG. It still can rally to May. It moves slowly, and it is moving slowly upwards to end the major wave 3 from 2009.

7:21 am PST. UUP has made a decisive breakout from the downtrend line. This could be very bullish for the dollar and could culminate in a new high.

7:13 am PST. I still see this morning’s sell off as part of a wave iv correction. I sold my JNUG and GDXJ this morning and then bought them back at lower prices. After gold did its really important 1243.20 overlap, I would expect a pullback 1-3 days. Just when it gives you the signal, it pulls it away and wants to make you doubt it. That is the market for you.

6:01 am PST. I was just looking at my corporate bonds etf, HYG, chart. It has a beautifully clean wave structure. It looks like it is nearing the top of major wave 3. You can see the negative divergence on the RSI on the weekly chart below. The HYG is a very good proxy for understanding where we are on the indices.

5:24 am PST. The Nasdaq continues to lead the indices higher. Gold is taking a brief rest, while the dollar is trying to muster up energy to rally.

1:03 pm PST. SPY had more than 1 million shares block traded at 229.09 and we closed above, bullish. HYG had a large 950,000 share print at 87.30 and we closed above, bullish. USDU closed above its print, bullish. Gold also had a strong close. TLT closed strong.

Hmmm, the indices, corporate bonds, government bonds, gold, and the dollar all look bullish to me for tomorrow’s open. That can’t be right. lol

11:40 am PST. Here is my wave count for GLD. We are in a series of minute iv-v’s now until we complete wave 1 of major wave 3. My ultimate longer term target for major wave 3 of gold is first target: 1661.64, and second target is 1993.74. The first target is 1.618 the length of wave 1, the rally from December to July. The second target is 2.618 the length of wave 1. The time frame target is November 2017, possibly January 2018.

11:27 am PST. I saw a 207,140 share block trade on another dollar etf, USDU, at 27.35 a littler earlier today. That was almost the entire volume so far today on USDU. It looks like a buy print as we are now above it. UUP is also looking as though it might close above the 4/8 ema again for the second day in a row. The dollar certainly is starting to look more bullish, which could be bearish for gold.

However, I am still going to stay long my mining stocks. I am no longer day trading them. I went long February 2nd before the breakout in a number of different mining stocks and I do not expect prices to return to where I bought them any time soon. Yes, there are going to be minor retracements, which I am not interested in day trading. My thesis is that the gold and silver mining stocks are in wave 3, which means we are going to go up in what will look like a straight line on the monthly chart. So, I am just going to sit back and let the  current take me there. I have my stops in place – near break even.

6:50 am PST. Bonds are exploding higher while the Dow sells off. Those massive bond prints in BND and GOVT were a big tell. The dark pool is an excellent leading indicator. These market makers trading billions of dollars usually get it right. They were buying bonds in anticipation of a market correction. The XLF is getting walloped. I do not know how low it will go. This is an interesting juncture with respect to pattern on XLF. My focus is on gold right now which I think will be the best performing sector this year.