Thursday Pre Open (Wednesday Eve)

Dow's Dangling DanceTuesday's shortened session added no notable information to the analysis of recent BOOMs.  It's that time of year.  However, the Nasdaq's M.O. has returned to overbought territory, and should reverse no later than Friday, heading lower next week, taking prices down with it, along with the other indices.

Note that the Dow has almost reached the ideal measurement of 16,350, but would still "look" better with another small down/up sequence, ala this chart in the last BOOM.

goldChart two is the short term projection for gold, which could bottom the entire decline from the $1925 peak after one more low.  Whether or not one more low, or a couple more that probe the middle to lower end of our targeted 1100 +/-75 zone, is all that is needed, the next multi-hundred dollar move is likely to the upside.  Silvers pattern is less clear, but should mimic gold's next big move.

Tbonds are poised for their final decline; wave v down from the 152 level of 18 months ago.  Once complete, near our long-time forecast for 125 +/-2 points (90% of that forecast has already been achieved), a multi-month rise toward 140 should follow - the largest upward, but corrective, bounce since mid-'12!  That 140 +/-2 zone will be the last time to exit Tbonds (and other bonds) before catastrophic damage befalls that asset class.

While the Yen just took out its '13 lows, and is at levels not seen since '08, it should also bottom imminently, but coincidently, with Tbonds.  It should reach up for resistance levels from last Dec/Jan.

Dollar should move generally higher for the next several quarters, if not years, but long yen and short Euro are more clear in pattern recognition/projection.

More after Thursday's action.

Thursday Pre Open (Wednesday Eve) by

About twwadmin

Ken Goldberg is a Registered Investment Adviser, and is the president and chief market strategist at Trading With Waves. Connect with me on Google+
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