Dear Readers, one should expect anything of the market at this point, but once we remember the "YELLOW BRICK ROAD" map ( search "OCTOBER 21 AGAIN", the task should be clear, sell when and if market rallies. Please note that Nasdaq Buy Pressure is now approaching extremely high. For a washout, one actually needs the BUY pressure to go sky high on SPX and Nasdaq. The truth now is that SPX buy pressure is not high and has never reached really high levels on this decline. Which suggests to me that it is still before us. Meanwhile as I said anything can happen. Pay attantion to the blue(used to bey CYAN) line, when it truns down for good from the high levels the rallies will develop. They are high now, but not the extremes we saw in August. So, perhaps that is ahead of us too - washout anyone?
Look at the newly redone Summation chart. It incorporates now the longer summation lines and they say one thing we just new all along, mainly that market has been losing strength even as it was going higher all the way from April to Nov. Yellow Line interpretation is still the same and Blue line is just a relative( not absolute) view of the summation line.
Note For Israeli Readers, If SHEKEL breaks below 3.85 expect 3.50, Otherwise we could be done here and SHEKEL may not see these levels, at least for 2 years! TA-100 will go with the world markets ( See YELLOW BRICK ROAD).
Dear Xerxes, all, I have no reason(if anything we have more evidence not) to change my forecast of Stronger Dollar into the end of this week and lower thereafter. GOLD seems to be listening to us as well...
Did somebody tell GOLD to collapse? and was not everybody and their mother's bullish on it. Read Safehaven titles and you will know what I mean. Just when we became very careful about gold and asked to start taking profits... Hahahaha. Shows you how much they know.
14 comments:
Boris,
thanx again.
old john
Good Day John,
Good Trading
Boris,
Ron Paul was just on CBS news.
old John
Dear JOhn,
Thanks
Good Trading
Boris, another gentleman I listen to called this selloff just as you did. I listened to his commentary again this weekend and he is saying that we would be down into end of nov. and then have a nice christmas rally and then down to 10,000 or lower on the dow by the end of 1st quarter of 08. Waldo.
Dear Waldo,
Seems like he/she is looking at the YELLOW BRICK ROAD...
Kidding, of course, but very close to our Road Map suggests.
I happen to think that this Nov Move could be very bad by the end of this month we could have seen a lot of trouble in the markets. It wouls seem like the what was supposed to happen in OCT and did happen to good degree maybe magnified into the Nov as the job did not look like done in that period. We shell see, so far, this does not look so nice for the world markets. Nowhere to hide. Even the CHINESE market/group has moved in the upper part of my group strength table after spending almost entire year in the lower part of it...
One push in the wrong direction could cause an avalanche down in here.
Good Trading
Hello Dear Boris....
I like to focus on the currencies Boris. With the discussion you just had with Waldo about the markets likely to decline till the end of November, and with a slumping USD/JPY leading the way, do you still hold to the idea that the buck will end its rally on Nov 16th and continue its decline till Feb '08?
Boris,
just got up, looked at Yen- WOW
old john
John,
WOW is right. But it looks like USD/YEN is coming down to some price support at 109, which was spike lows last year. All time lows are around 1104. Also, according to my chart measurements....of the last down leg from 124-111 areas(Jun to Aug) should be repeated in this current down leg which started on 10/15 which would put us pretty close to long time lows of 104. I would expect a small bounce here but then heading lower for a while.
Jason
Rich, try the August archives.
Dear Rich,
YELLOW BRICK ROAD is indicated in two major articles ( www.safehaven.com or borisc.blogspot.com
Just search ( "OCTOBER 21 AGAIN" or "AUGUST AGAIN") and look for dark charts with the YELLOW and the WHITE energy charts in them.
Good trading
Thanks Dave/John for your help analysis
GOod trading
Boris, would you have time to give me a short term downside target on xle. Thank you, waldo.
Hi Boris/all,
The banks have been doing the heavy lifting since Thursday. They have just about finished 5 waves up and approaching resistance. Some sort of correction should soon occur.
Mark P.
Mark,
I would like them to rally just a bit more to some good price,gap or trend line resistance to keep stops close by. But they led the market down and it looks like they are out front again leading the bounce and then probably the continuation down.
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