As predicted, DJI went back to recent highs before starting a decline on Friday. SPX made a new high before starting a decline on Friday. The last candlestick on candlestick charts is bearish. Volume was high on Friday because of Option expiring .
The Russell 2000 (IWM) is trading for 49x earnings compared with a multiple of 39x at the height of the Internet bubble. The S&P 500 P/E ratio of 17.2x is also high. Earnings on Russell 2000 are also going down. This is the right time to become bearish on IWM and corresponding ETFs. Thus we recommend purchase of TZA ( 3X bearish Russell 2000) to get the biggest bang and same can be aid about, SQQQ which moved nicely higher on Friday.
Gold continues to move lower in 5h step down of he thefirst leg down. If Gold stays above $1300, a rally can be expected soon. This may not go above recent highs. After the rally has been completed, we will have to
take short positions as we could easily go down below recent lows of $1180 in the final 5th leg down
DJI
SPY
QQQ Sell Signal 7 days ago and confirmed on Friday
SQQQ Buy signal already given on heavy volume
IWM Ready to give SELL signal
TZA Ready to go up. You can buy in the money calls (14) for June or longer months for the biggest bang
GLD continues to go lower
GDX Gold Miners Still going Lower Take profits in short positions
NUGT Going Lower
The Russell 2000 (IWM) is trading for 49x earnings compared with a multiple of 39x at the height of the Internet bubble. The S&P 500 P/E ratio of 17.2x is also high. Earnings on Russell 2000 are also going down. This is the right time to become bearish on IWM and corresponding ETFs. Thus we recommend purchase of TZA ( 3X bearish Russell 2000) to get the biggest bang and same can be aid about, SQQQ which moved nicely higher on Friday.
Gold continues to move lower in 5h step down of he thefirst leg down. If Gold stays above $1300, a rally can be expected soon. This may not go above recent highs. After the rally has been completed, we will have to
take short positions as we could easily go down below recent lows of $1180 in the final 5th leg down
DJI
QQQ Sell Signal 7 days ago and confirmed on Friday
TZA Ready to go up. You can buy in the money calls (14) for June or longer months for the biggest bang
GLD continues to go lower
GDX Gold Miners Still going Lower Take profits in short positions
DUST Take profits Now
SLV ; rallies will not be very strong
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