Last week we had high confidence that the Dow would top around 32K and reverse. Our bear flag and retracement convergence looked a great setup. The Fed's 700 Billion spending bill again, ignited markets beyond our thinking...an ABC counter rally has the C wave at higher degree.
Now 33K area is the target and may even throwover a little beyond our trendline. Over leverage is a dangerous tool to practice...bear markets function to blow up everyone. These rallies are difficult to pinpoint and often vicious enough to frustrate or wipe out the bears.
So often the turn comes when the towel is thrown in. Bulls are beginning to believe the worst is over, whatever wave three down at multiple degree coming is caused by...it will be big. Something fearful...an event approaching so fast, it will totally surprise.
The US economy is in recession, rates are rising, folks are mostly broke. restaurants are hiking prices, low income consumers shunning their high prices but the middle class are prepared to pay up so far. When 70% of an economy is consumer driven and prices are going through the roof...prepare for a serious situation.
Gold and silver may have bottomed with this weeks rally, deeply oversold and sniffing out the Fed's ruse. Trillions more insanity is coming, those with precious metals need not worry.
Summing up: An ABC rally at higher degree will top out very soon at around 33K with a likely small throwover to 33300 but this does not have to occur for a top. Remember that the bear market wants everyone to lose.
Appreciate a thumbs up...let's see this time next week, Good Trading!
Wise wise words. We bears must be patient now if we are going to get the honey. In the meantime, we can win with precious metals. Silver is a steal at these levels.
Fractal777
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@YouCannotBeSerious, Thank you friend, bought more Aussie 1oz silver mint coins at $30 Australian this week, absolute brilliant. A ratio price that it takes 87 silver oz's to buy 1oz of gold when it comes out of the ground at around 10/1...total bargain of the century. Those with PM's and we mean physical, will reap multiplier rewards coming.