11:30

DJI just touched 5-min, 370-unit EMA.  B wave complete, on to the final C.

11/3 pre-open

Congressional committees will be re-selected.  Tea party brought GOP back in and a big freshman class will keep the congressmen in line with the platform.  Compromise will be more difficult, if not impossible as the minority becomes more strident.  Obama won't be able to bridge the gap, even if he were truly willing.  So, good news!  Uncle Ben will face a reconstituted Financial Services Committee.   Profligacy will be a sin, not a virtue.
Longer-term bullish for the dollar, bearish for gold.  Just awaiting the final fiat declaration this afternoon.  I'll have orders in beforehand.  I will be online well before the announcement.

11/2 3:45

Back in the hotel.
Going into the close and the stock market is in wave b of an abc to cap the ending diagonal triangle.  Probably some backing/filling here and a pop tomorrow.  Gold chopping around before heading lower.  Dollar index looks like it bottomed but is being held in bay by a strong stock market.
I'll be getting into positions tomorrow prior to the FOMC announcement.  If the unexpected occur and GOP does not win back the House then SP futures 1166 is critical support along with DJI 10,995.  I sold ZSL to get flat at 16.55.  I won't be able to be at the laptop tomorrow until late in the day.

11/1 Daily Commentary

Last night I shorted gold near the high because gold was correcting a 5-wave down and breaking out from a 4th wave triangle.  So odds are strong the top is in.  Of course this being a wave 2 up it could correct all the way to the prior high, 1388.10.  Commodities of all stripes are entering 2-year bear markets.   

Gold has it's own sentiment indicator, like I1.  It is documented in the page PM1 Precious Metals.  This peaks the first few days of November.  Since this indicator is not spot-on like I1 other criteria must be used to pinpoint specific points.  In this case the wave count says it all.  No need to mark up the above chart as the count is obvious.

We have 2 back-to-back volatile days.  Election day should rally as the market celebrates gridlock. If our government cannot limit it's powers then I welcome gridlock as a temporary solution.   Wednesday Uncle Ben will tell us how much he will stuff into our stocking.  I'm not so sure we'll rally here as Ben has inspire the ire of our trading partners and, by the way, their governments.  In addition, he has the likes of Bill Gross reprimanding him for insane action.  People are judged as insane if they perform the same actions over and over expecting different outcomes.  PIMCO has been selling treasuries, probably along with other savvy wags, and treasuries have declining into the expected largess of the Fed.

The stock market came close to a new high but backed off after completing a 3-wave up.  This could be part of the final wave of an ending diagonal, with another 3-wave up to complete the pattern..  I'm still banking on the election to spur a final rally (I1 is up slightly this week as well).  Since the last I1 sell signal 10/13 the stock market has only clocked 3-waves and choppy seas.  The latest on SP futures is a decline to a key M/A at 1177 and the stochastic setting up for a rally. That little light blue line in the chart below (minus 13 points) has stopped this market for 2 months from breaking down. 

11/1 3:20

I had a pre-open post explaining that I was travelling to Albuquerque today, but it did not publish.  The gist of it is that I believe that the dollar has bottomed along with the top in gold.  I went short Dec gold 1364.90 and am holding with a 1369.10 stop.  I a m also long ZSL.