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.

6:35 am PST. Ding, ding. Overlap of 1243.20 accomplished in /GC.

6:24 am PST. Technically the dollar could run higher as according to my account we are still in the ending stages of wave 3/(3). But there was an awful lot of negative divergence at the last top at 103.82. I think as long as it does not overlap 97.62, the dollar could go higher and much higher at that. If it does overlap 97.62, then I think we could test 96. If 96 fails, it becomes very interesting.

5:43 am PST. I want to post charts of GLD on multiple time frames going from the Monthly to the 30-min. I like to see how really beautifully human behavior repeats in similar patterns on different instruments. The passions of people never change. I have come to realize and believe that trading is about discerning human-behavioral patterns with regard to stocks. Trendlines, moving averages, elliot wave counts, and the multitude of indicators all help to understand how people are feeling about a particular stock. Human behavioral patterns also exist in the universal realm of fibonacci growth sequences and pi cycles. We are stardust after all.

5:01 am PST. Gold futures are almost at the 1243.20 overlap point that confirms gold is in a new major wave 3 bull leg up that will take us beyond $1400. I will calculate my target for this major wave 3. The gold mining sector is going to be the hottest sector this year.

1:03 pm PST. The Dow closed up 37.60 points. I remain bullish. Here is my wave count for XLF. My target over the next month or two on XLF is $26.

The Dollar made gains today, with the UUP closing just under the trendline. UUP closed above the 8 and 4 emas which is turning bullish.

Gold and silver mining stocks gave back some of yesterdays gains, but in face of the dollar rally, I thought they held up well. To me, this looks like a wave iv consolidation retracement. Here is my count for GOLD. I remain bullish.

9:26 am PST. The Vanguard total market bond etf, BND, has seen for two straight days some really massive buying volume in the dark pool. The market makers are piling into bonds.

GOVT has rallied off that massive 7 million share print at 24.93 that we saw at the end of last month.