8:49 long Dust.

8:34. Seeing some SPY prints at the 226.45,.46 area about 3.3 million so far. Not sure if it is buying or selling yet. Those were real-time sell prints.

8:17 trying a USO long-side trade from 11.83 with a target of 12. Stopped. -.05

7:37 Closed ABX +.02, closed NUGT +.12. I looks like I probably will wait until the close today to take another trade.

7:27 bought ABX avg price 15.33. I might be early on this trade. I would like to see SLV close above 16.23 and GDX above the 21 sma.

6:42. Closed all positions. Flat.

6:36 am pst. Closed my options trades for about -.04 to -.12 each. Added JNUG. looking to add USLV.

5:22. I opened a starting position in NUGT this premarket morning to neutralize my options trades in case we blast off to the upside.

Buzz, thank you for your comment. I appreciate it. I find the QQQ easier to count than the Dow. The wave count looks clearer to me. It looks like we are in a wave (5) fractal of some denomination. That sounds slightly vague for a reason because with my counts I like to leave some room for ambiguity in case circumstances change.

A wave (5) fractal means that it looks like we could be in an ending wave or starting the phase transition to the upside. The Levels are most important and I will watch what happens in January to determine whether we will face a sharp and larger wave (4) correction, or a milder wave (ii) correction.

After going to about 120ish, I expect the QQQs to make some sort of corrective move to the 118 area, or to about 110, and possibly as low as the monthly trendline at around 100. Then we will see if it can continue to rally. I will also probably watch to see what the market makers do.

4:47 a.m PST. I exited my JDST weekend swing for +.70 this morning. I still have my GDX and SLV puts, and the GDX calls I sold. I plan to exit these at the open this morning. Silver is a lot stronger than gold which could be a bullish bottoming signal. I plan to look for an opportunity to go long the mining stocks: PAAS, ABX, NEM, JNUG, GDX.

We are very close to finishing this wave down. Here is the 5-min fractal from the 60-minute chart.

Silver is making a higher low. It is interesting that SLV overlapped 16.23. That is typically bullish. Often times when prices overlap a significant level, they pullback before making their close above. I will watch to see if SLV can close above 16.23 this week.

I decided I would reward myself with yoga classes at this yoga studio I have wanted to try for quite a while. I used to play high school varsity basketball and swam on the swim team when I was a lot younger. More recently, every now and then, I pick up a game of tennis. I like yoga because I like the meditative and physical strengthening aspects of it. And I love the endorphins after a great work out. That’s a great reward!

12:52 pm

Today I had a really great trading day, probably the best day of the week. I am really happy about how I traded today and will reward myself with a nice little something. I have to think about what my reward will be.

Gold started to sell off early in the morning. I could see the upper trendlines on ABX and NEM were just too much resistance and found a lot of sellers there. GDX also could not break through the 21 sma on the day chart after attempting for three straight days. GDX finally broke down.

I shorted NEM on the retrace after the gap break down this morning and traded it well.

TLT and LQD sold off as I expected they would. I exited my LQD at the open. The QQQ rallied up nicely and still maintains a bullish posture to my $120 target.  I exited my QQQ overnight swing at the open as well. UGAZ rallied too, sold off and then found buyers again. I saw two large DGAZ prints near the close at $3.38 for a total of 14,000,000 shares.

I expect gold and bonds to continue the sell-off Monday morning and for the indices to continue to rally.

11:30 am. I see the Market Makers are selling NEM today. Hee, hee. Maybe they are reading me. 🙂 Nice choice guys and gals. Would you like to hire me to do technical analysis for you?

They traded about 390,000 shares at $32.98. If we close below that, look out below!

11:31 I bought JDST instead of shorting NEM. 3x. At 37.07, scaled out half 37.48 for +.41. Closed out the remainder for about break-even.

11:09 covered for +.01 NEM. I think I will wait until the close. Perhaps the new lows will happen tomorrow.

10:42 re-shorted NEM at 32.97. It might break down here, or it might do one more small retrace up to the 33.20 area by about 2:30 pm EST before going down again. In a partial short position just in case we go up again and then will add on the rest there.

10:28 re-sold NEM at 33.04. Stopped 33.08 -$.04.

10:23 exited JDST at 36.76 for +$.43. Will hold onto my GDX puts. I might re-enter yet again JDST. Or re-short NEM.

9:57 Re-bought JDST 36.33. I may be a little early, but eventually the junior miners will continue to make another new low today.

9:48 Bought JDST for 36.48, going to hold for new lows. And GDX lotto puts expiring next week. Stopped JDST 36.30, -$.18. Will look to re-enter.

9:34 Covered the rest on NEM at 32.90 for +$.58. Great trading! Will look to re-enter towards the close. Perhaps around 11:30 PST, 2:30 EST.

9:26 Bought GDX at 20.70 and sold for 20.74. Sold just out of the money calls on GDX going out two weeks for .59 each. I also exited QQQ and LQD near the open this morning.

8:47 Scaled out another 1/4 at 33.08. Will hold the rest for target $29 or break even.

8:37. Shorted NEM from 33.42 and just covered half at 33.16. I might re-establish a full position on another bounce after the lunch hour, or if we continue to sell into the close. I like how I am trading this.

8:20 am PST. First downside target for NEM is $33.01. If we close below the21 sma Day today, look out below to $29.

7:23 am PST.   It looks like I will probably short Newmont mining on a bounce today and swing it into the Fed meeting next week if the gap down remains open. The rumor is that they are going to raise rates so sell gold and bonds. When they do, we will probably see yet another shortable bounce after the fed. Sell the rumor, buy the news this time. Or buy DUST on the rumor and sell the news. 🙂

GDX is now squarely under the 21, 8, and 4 moving averages. If we close below the 4 and the 8, that is going to be so bearish. My downside target for GDX is around $19.

5:22 am PST.

This morning I plan to exit out of my LQD swing short and hold onto my QQQ long until the 120-121 target. I also will look to buy UGAZ to the long side with a UNG upside target of $10.10.

I will watch the mining stocks for a breakout or breakdown, especially ABX at the neckline and PAAS. The fact that /SI is slightly positive here with the dollar rallying is interesting.

I will watch to see what the market makers do.

Natural gas is having a really nice rally and could finish this wave higher at around the upper trendline which stands at around $10.10. I like that the volume in this move higher has been higher than usual, which could mean that UNG could eventually rally as high as $15.70, which is the 200 sma on the weekly chart, sometime by mid-next year. I think UNG will rally into next week, consolidate through the holidays, and then continue its rally into next year. I plan to trade UGAZ to the upside, and may short UNG at around $10.10. Thank you SKT for asking me about UNG, your questions really helped! That is why I do this because I like connecting with other traders. You open my eyes to new vehicles. If anyone would like me to look at any other stock, please comment as I would be happy to look into it!

TLT looks like it will continue to sell of to complete a wave 3 into Christmas. I would say this first major wave down is about 75% complete with 25% more to go into next year. I think TLT will move lower into Christmas, then do a triangle bounce through the holidays as the market makers go on vacation. Then drop again in the new year with a downside target of about $105ish.