Folks,
Market Observations for the Week: The SPX made a new ATH at 6764 but the tape was unsettled with only a few sectors higher on the day. The SPX is heading higher into the 10/10-10/13 3-star critical reversal time window which could give us some volatility. Both the SPX and NDX have made the minimal 5th wave pattern completion from the 8/1 low – they continue to sub-divide higher in a 5th wave. We continue to raise our cash levels. The continued market blowoff in the SPX/NDX is targeting the 10/10-10/13 turn window and at that time some serious lunar spiral calendar cycles come into play. In addition, when the SPX fails to give us a decent pullback in September, we are wary of the following October – especially the second half. We ARE IN OCTOBER now and continue to raise our stops and cash levels for a potential 10% correction later in the month. However, the uptrend in the SPX and gold is still in place, and we are looking for higher SPX and gold prices into next week before a significant correction – 10/10-10/13 is now our time target for a high, but the 10/21 New Moon is also a possibility. Gold tested $4080 on Wednesday and then gave us a 3-wave correction into the 10/10-13 turn window. In the longer term, the GDX could test $90 by December, and silver could CLOSE above its ATH at $50 by mid-October. We are now flat BABA and our out of technology in our short-term account. Our current investment positions are: 25% cash, 5% QQQ, 25% GDXJ/SILJ/REMX and 20% physical gold/silver/platinum. We have a 25% overall allocation to our short-term trading account which was last updated on Thursday to include: 100% cash, 0% SLV, 0% GLD, 0% SILJ, and 0% QQQ.
TURNING POINT DAY
We have a turn window for this week on 10/6-10/7 and 10/10.
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