Sunday, July 31, 2011

As Predicted earlier today

Asian Market Jump As Obama Announces U.S. Debt Deal from CNBC

And as predicted just in time for the Asian open.

With the S&P only loosing 55 points last week, but breaking major support levels triggering huge volume that can be accumulated by Wall Street and 3C showing at least 3 solid days of accumulation, you have to wonder when this deal was actually done and how much of what we saw last week was simply posturing for constituencies?

And from the WSJ, as of 27 minute ago, DOW Futures surged 187 points in screen trade!

I think 3C may have been the ONLY indicator predicting such an outcome and 4 days in advance! I hoped you used the signals to shift your portfolio for what looks to be a monster relief rally, we'll be watching for our short side entry, but if this rally does what I think, you might find yourself doubting any downside-DO NOT BE FOOLED, this is what  I have expected since July 25th.

Another thing to keep an eye on, Gold. Remember last week I posted "Gold Continues Lower, For Now..." on July 28th, with this chart and commentary...



 However, as you know, our best divergence/reversals come when all timeframes are aligned, especially important is the 15 min chart seen above. There is no negative divergence present at this time, which makes me think GLD may attempt a rally close to the recent highs, that would give the 15 min chart a chance to go negative. The other possibility is that the 15 goes in to a leading divergence as GLD moves lower, but I think the first option is more likely. Reversals are rarely a clean U-turn.


In this post later at 10:05 p.m. the same day I showed short term charts suggesting gold would move higher.


On Friday July 29th, GLD did move higher  , Here is the post....


Earlier I mentioned the update from yesterday in which I expected GLD to rise and I would be looking for a 15 min negative divergence which has not been present thus far.. Well on today's move up, we got exactly what I was looking for. This is bearish for GLD for the short-intermediate term.


As suspected, there it is, played out exactly as posted-a bit quicker the I expected, but there it is.


So the next day all 3C implications were fulfilled, the predicted move higher and the 15 min negative divergence on that move higher all played out exactly as each update implied! Now we have the typical 3C set up for a move lower in gold/GLD.

As of an hour ago,  Market Watch says gold is trading down $18.

As usual a lot can happen overnight and especially with the fluidity of the debt negotiations, but as of now, I find it interesting that 3C has called every major market move PERFECTLY since early June. These have not been easy calls to make. In June 3C started calling accumulation for a massive short squeeze, this while the market was still falling in one of the nastiest declines we have seen in awhile.  While 3C was calling for this rally, we had two weeks of accumulation; at any moment the market could have continued lower, we stuck with the 3C call and were rewarded on a nice short covering rally. This is what the market looked like.

 The June basing call and rally call

 3C short term signal for a decline to be accumulated

 Accumulation of the decline from the July 23 decline and a all for a short squeeze rally

 The short squeeze rally

3C calling accumulation on what should have been a nasty decline down with horrible economic news and a debt ceiling dispute that seemed to have no positive outcome. Last week's calls were the hardest, as 3C contradicted price, it was something that could have given me an ulcer but I owe my members the truth of the underlying action and if you acted on t, it seems you may be handsomely rewarded.

As for GLD...
 60 min. 3C chart starts calling for intermediate term weakness in GLD

 15 min 3C calls for a downside reversal in GLD, but warns that this does not appear to be the final reversal signal and says to watch for a new high before a real reversal takes place.


 Short term 3C charts call for a jump in GLD, at which time the 15 min 3C chart will have put in a second negative divergence and a more serous one regarding the GLD downside reversal.

GLD in fact does make a new high on a 15 min 3C negative divergence as predicted days earlier.

It's too early to do an end zone dance or take a victory lap, but so far as of tonight, all indications are that 3C has made near flawless calls in a very difficult environment, one that made last week a very stressful week for me personally to make such counter trend calls.



Should these calls play out tomorrow, color me relieved and very happy that I brought you this information first, last week was a gut-wrenching week for me to bring you this information in the face of such overwhelming odds going against the 3C calls.

Now, hopefully we are set up to make some good money, but don't forget, there are still massive problems with this market and while I will ride an uptrend and make the most of it, ultimately I'll be watching for the next negative divergence to enter, re-enter and add to short positions on what will likely be the second shoe to drop. As I have already said, should this rally play out as it seems it will as of tonight, be prepared for a rally that will test your bearish convictions. Wall Street has had the opportunity to accumulate a lot of shares on multiple breaks of important resistance on huge volume. They potentially have enough shares long to take this market to new highs and in a way that is very convincing. Also remember that to get longs to buy the rally, it MUST be overwhelmingly convincing.

Lets see what happens tomorrow.

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