Some people confuse our postings.We did not post anything on Thursday. Last posting was for Wednesday Aug 21.
US markets have been going down since Aug 2, 2013. First leg down has five steps. The fourth up leg was probably completed yesterday near the end or may be early morning today. It will be followed by new lows in DJI & SPX. Nasdaq may or may not make a new low. Same can be said about IWM--( corresponding to Russell 2000) The rally may cover 50%, 67% or 100% of the recent decline from August 2 highs.
Cover your short positions when the markets complete new lows. That means selling TZA during the next decline. The markets will go much lower after 50%, 67% or 100% rally.
Let us look at the charts
DJI
SPY
IWM
US dollar index has been going down . The following two charts are courtesy of KITCO.com
http://www.kitco.com/news/2013-08-22/KitcoNews20130822JW_forexcharts.html
Euro VS dollar
Now let us look at gold. There is no SELL signal on Gold & Gold related stocks. We cannot be sure whether Gold is in a 4th leg up followed by new lows or it is the start of a big rally that everybody has been expecting. We have to blame Bernanke for the chaos it is causing in all developing countries. The currencies ( & stock markets ) of India, Indonesia, Turkey, Pakistan, Brazil and many other countries are being ruined by Easy Money policies of our Federal Reserve. These countries borrowed heavily from USA and now they have to pay back in local currencies which are being devalued big time. The interest rates in these countries are rising and no matter what they do, they cannot stop this.
Gold
GLD
GDW ( Mining Companies ETF)
NUGT ( 3X leveraged Mining Company ETF)
The heavy volume in GDX & NUGT tells us that they have to go still higher . For more news about Gold you can also go to this web site:
US markets have been going down since Aug 2, 2013. First leg down has five steps. The fourth up leg was probably completed yesterday near the end or may be early morning today. It will be followed by new lows in DJI & SPX. Nasdaq may or may not make a new low. Same can be said about IWM--( corresponding to Russell 2000) The rally may cover 50%, 67% or 100% of the recent decline from August 2 highs.
Cover your short positions when the markets complete new lows. That means selling TZA during the next decline. The markets will go much lower after 50%, 67% or 100% rally.
Let us look at the charts
DJI
US dollar index has been going down . The following two charts are courtesy of KITCO.com
http://www.kitco.com/news/2013-08-22/KitcoNews20130822JW_forexcharts.html
Euro VS dollar
Now let us look at gold. There is no SELL signal on Gold & Gold related stocks. We cannot be sure whether Gold is in a 4th leg up followed by new lows or it is the start of a big rally that everybody has been expecting. We have to blame Bernanke for the chaos it is causing in all developing countries. The currencies ( & stock markets ) of India, Indonesia, Turkey, Pakistan, Brazil and many other countries are being ruined by Easy Money policies of our Federal Reserve. These countries borrowed heavily from USA and now they have to pay back in local currencies which are being devalued big time. The interest rates in these countries are rising and no matter what they do, they cannot stop this.
Gold
GLD
NUGT ( 3X leveraged Mining Company ETF)
The heavy volume in GDX & NUGT tells us that they have to go still higher . For more news about Gold you can also go to this web site:
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