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...
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.
As for GLD...
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.
