5:28 am PST. Last Friday I got stopped out of FB to the long side. I think I tried maybe three times to go long. It is now above where I tried to buy it, but I am going to be looking at shorting Facebook. It looks toppy. But I will only do it if the SPY starts to roll over and TLT perks up. A lot of ifs, so I am just watching right now.
5:04 am PST. “The next crash will be concentrated in bonds this time,” said Martin Armstrong in today’s blog post. He means government bonds. As a result, I wanted to take a closer look at TLT this morning. The TLT is wedging and looks as though it may have completed an a-b-c-d-e bearish wave 4, after which it could head to new lows this week. I might short it.
Pre-market, TLT is down at 119.74 now. I think it’ll consolidate a little perhaps. It is below s1.
4:51 SPY is almost at my first target of $236 and so I am scaling out the bulk of my positions. XIV +.43, VXX cover + .32, FAS +.80, GDXJ cover +.32. Interesting how the XIV is negatively diverging from SPY. SPY making new highs which XIV is not. That to me is warning sign. XIV typically trades in anticipation of SPY moves.
4:36 am PST. The Dow futures are up this morning as expected from Friday’s close. They are up about 70 points. Gold is down as well, which was expected at the close of Friday. Gold could see support at $1210. The dollar is up significantly as well and I think it could be on its way to $104.
I switched to a raw-food lifestyle several weeks ago and I have to say that I really feel great. I feel my immune system is much stronger and I have more energy. Lately, I have also been advising other people who want to feel young, stay young and vibrant, and be healthy to include more raw foods in what they eat everyday. Switching out cooked food for raw food makes a huge difference in health. I believe it! At first I was like, ok, I am going raw, but what do I eat? I found that after several weeks, I can hardly look at cooked food anymore because I just feel raw food is so much better. There are only a few things I will eat cooked: meats, eggs, rice, steel cut oats, and bone broth in very small quantities and not everyday. Everything else is raw. I think I do about 80% raw.
Here are some Kirlian photos, courtesy of rawfood.com, comparing the life energy of raw vegetables compared with cooked vegetables. Clearly raw vegetables have a lot more life energy in them. That is the energy that I believe is making me feel so much healthier these days.
Beautiful raw apple energy
There is also magnesium oil, my absolute favorite oil in the world!!! I love magnesium oil. It is great for massages and hot baths when you want to relax. That is why I believe the mayans called their cacao drinks the nectar of the gods. Cacao is rich in magnesium. Today’s chocolates have a lot of processed sugar in it, so I just go straight for the magnesium oil in the form of lotion or the oil in hot baths. 🙂 I also believe that the magnesium lotion I sent my mom helped save her from a debilitating stroke. Yep!
The Dow and SPX bottomed in March 9, 2009. Adding 8.6 years brings us to about the third week of September. SPX bottoming at 666, exactly. Amazing how biblical. A lot of 3’s in that number 666, 3.9.2009.
2009.20 bottom, + 8.6 years = 2017.80. 12 x .80 = 9.6, which looks like about the third week of September. Someone please correct me if I am wrong.
666 x 3.62 = 2410.92, a fibonacci ratio. Just an interesting observation.
The next ECM turn date is November 2017.
1:03 pm PST. Really strong close on the SPY today. It broke above the top trendline confirming that the correction was over. Going into the weekend I have SPY calls, long FAS, short VXX, and have a few AAPL calls. Target SPY is 236 at least, possibly 237. I stopped out of FB.
The miners continued selling off into the close. I am looking for 39.50 on GDXJ next week.
Have a great weekend!
8:51 am PST. This is what I think is happening on the SPY now. It looks like a-b-c-d-e done. Has to break above the upper trendline to confirm. I covered GDXJ +.52, GDX +.32. Will look to re-enter.
7:45 am PST. I shorted GDXJ from 42.24, target $39 by end of Feb. Shorted VXX, bought AAPL calls and FB. Long FAS, all this morning. I think my thesis might just play out.
Bank of America and Goldman Sachs look done on the downside.
2:48 am PST. Yes, I do watch and trade the market during the wee hours of the morning in California. Lol. If you are in the east coast, its probably just regular morning hours, but you are lucky that I am up now. 🙂 This is when I think best. Now I think I understand what is happening. Gold and bonds are going up because the SPY still needed to do its wave c-d-e, which I had mentioned, but then seemed to forget at the close yesterday when I got preoccupied with the AGG prints. Yes, the market makers were indeed buying gold and bonds. Good thing I came to my senses and turned around and bought gold, lol. But it is an ending wave v in gold. I stopped out of my TLT this morning.
What I see is that the SPX will go up to new highs in an final ending wave to end the Major wave 3 up from 2009 by next week as gold makes a minor retrace. Then the indices will likely correct for 3-7 months as gold rockets higher in its wave 3. After the market finishes its Major wave 4 correction, gold will correct again.
The HYG, corporate bond etf, tracks the DOW very closely. It is a slower moving vehicle than the indices, but has basically the same trend. It looks to be topping by the end of February in major wave 3 up since 2009.
The Goldman Sachs wave counts also confirm that there is only a minute wave (v) higher, which looks like it will probably end next week. Wave (i) took three days. Wave (iii) took five days, and so wave (v) will take less than a week to complete which brings us to next week. Once wave (v) completes that will probably mark the end of Major wave 3 in the indices, at least that is my thesis.
This is a look at the Daily chart and the RSI confirms a topping process right now.
This morning’s low in the SPY for the completion of minute wave (iv), and is a buy for me for one more ending minute wave (v). Simultaneously, the miners are a sell in an ending wave up.
3:16 pm PST. I changed my mind and bought some select mining stocks after market, and after looking at individual charts.
1:13 pm PST. I took profits on JNUG +.50 and shorted TLT because we closed below the AGG prints and under the 4/8 emas on higher volume. IAU closed above the 11.92 print, and above the 4/8 ema, but I am not sure about it so I just took profits. I can always get back in tomorrow if it looks bullish again.
It looks like it might be the kiss of death for bonds.
My Journey Towards Understanding the Markets 