Thursday, December 30, 2010

12/30 Daily Commentary

Now that the stock market is becoming actionable I'll be making more frequent comments.  Currently I'm short gold futures and long dollar futures.  I'm long ZSL from yesterday.
I1 peaks tomorrow at a pathetic 1.22 and bottoms 1/10 at .19.  I'll be shorting the stock market tomorrow with futures and ETFs.  In my mind the market just completed it's Minute 3 wave up yesterday. It's the only way that the I1 rush starting 1/11 makes sense.  This decline should retrace some real estate with such a big wave 3.  However, if a rectangle develops at least I won't lose money.  I believe I'll be selling into a rally tomorrow.

 EWI counts it differently, so if they are correct the decline through 1/10 will be sizeable.
The dollar hurt yesterday and today.  I'm currently long 1% but I did not post the sale of the 1% at 80.08 after yesterday's close so I'll carry 2% into the Trade History.   I am using the Euro for wave counts due to the picture-perfect 5 up the morning of the 28th being retraced by more than 100% to today's low.  The Euro count was posted earlier and has not changed, being a series of 3 waves defining an upward correction to an established downtrend.  My trade tonight will pivot on the 10-minute, 145-unit M/A plus 6 points as a buy signal.  I'll make the trade but will not reflect it in Trade History, carrying the 1% at 80.09.

If the stock market declines after tomorrow then gold and silver should follow.

1 comment:

  1. Steve et al,
    I hope everyone's holidays have been good, sorry for being so quiet lately. I have a daily weekly and monthly sell signal on Gold as tracked by GLD. Typically a one to four month move results. This is counter to the mainstream expecting gold to blow up in it's "C" wave. Copper as the JJC looks similar. Rotation into stocks post this next down move up to Steve's big I1 advance onto Mar/Apr? Just a dollar move?