The EUO etf, which is the ultra-short Euro, has the same pattern as the U.S. dollar. I see we have waves (iv)-(v), (4)-(5), 4-5 left. The negative divergence is mounting with each new high warning of an impending top.

Question: What is the best broker to use for trading options if I live in Europe and wish to trade options on U.S. stocks?

Answer: I really do not know. I know of a Canadian who uses eSignal to trade U.S. stocks. I would suggest calling up the big name brokers that have offices in Europe and the U.S. first and asking if you can do it through them. Also doing an internet search might help.

Question: Do you think the dollar will continue higher along the same angle?

Answer: I have posted two counts on the dollar, one with the high having taken place last week, and an alternative with the high being a minute wave b of wave iv. Judging by the futures trading right now, it appears that the dollar could have another minute wave v up this coming week to complete a wave 3. I will post an updated chart tomorrow.

At the same time, I do not see the bond sell-off as done. I see a series of wave iv-v’s down into maybe March. If the money will flow out of bonds where will it go?

It is quite possible that we may have completed the top of major wave 3 this month, and are heading into a major wave 4, which would be a multi-month corrective triangle with the first sell-off being the steepest.

The daily charts shows negative divergence and a completed five-wave ending diagonal. Once the lower trend line breaks, NDX could pullback as far down as 4200. Just something to watch for.

NEM closed right on the upper channel trendline. Is this a backtest and then bounce? Typically that is what would occur… NEM stopped at the 200 sma.

UUP close right under the trend channel. I might need to make my lines thicker. 🙂

My musings on the elimination of cash. If governments succeed in eliminating cash, I think that would be the end of the dollar’s reign and bullish for commodities as where else are you going to keep your savings safe? Having a bag of rice in your kitchen is better than keeping dollars in the bank where it is liable to be confiscated at whim. 🙂 Just look at what happened in Greece.

Happy New Year!

12:28 pm PST. It looks like we are getting a gravestone on the 20-year bonds ETF, TLT, plus I saw an 800,000 share block trade at 119.62, which we will likely close below. I am bearish on bonds.

We also are getting a gravestone doji on gold, silver, and a lot of the mining stocks. Newmont mining backtested the support trendline, but broke down under it. If it closes below that is bearish. I also saw market makers selling the precious metals. In addition to the 2,000,000 GDX sell trade this morning, I saw 1,250,530 shares of DGL traded at 37.17. If we close below, that is added evidence of a bearish disposition. I am bearish precious metals stocks. 

The Dow continued to sell off today, still shy of the 20,000 milestone. But with the doji on the TLT, I think capital is going to start moving out of bonds and back into stocks in the new year. I am bullish on the Dow and the banking sector.

My 2016 results are in. I made a 63% return on my investment this year. A near fibonnacci ratio! 🙂 Whoohooo!! I am so happy that I believe my trading is turning around and I am showing a positive return. I expect myself to continue to trade well. All those years and hours practicing and studying is finally paying off. Time to celebrate!!!

I am really looking forward to 2017. I think next year is going to be a great year. I look forward to all the new profitable trading opportunities that will arise. And I look forward to making new friends and posting profitable trades!

10:11 am, PST. XLF is the only thing I like right now. lol. It is holding onto to moderate positive territory despite the sell-off in the indices and the bond rally. I think XLF could continue up to $26 for the first half of 2017.

I closed out all of my positions in everything. I am totally flat. I want to look at the market with a clean slate today going into the new year.

9:42 am. PST. Silver looks like a simple a-b-c wave iv retrace which could result in new lows next week.