Update for Wednesday Sept 30, 2015 Premarket

The market was down sharply in the last 3 days  and some rally is expected to relieve the oversold conditions.
Russell 2000 made a new low below August 24 lows yesterday and energy stocks continue to be weak.

It is very easy to manipulate DJI with only 30 stocks . Similarly it is easy to manipulate SPY  where manipulating just 10 top stocks can move the market. Since this is the 5th step down, not all stocks will make new lows.
At the same time, some kind of capitulation is needed to start a decent rally. We do not think this rally will last and we should have new lows soon before the decent rally. We will not short the market and in the next decline we will take profits in our short positions.
Gold continues to consolidate.

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Update For Monday, Sept 28 Premarket

We have no change in our position of last Thursday.
Energy stocks are going lower. Friday DJI  was up . Most other indices were down. We will continue to go lower till we get new lows below Aug 24 lows. UVXY is continuing to go up . We became neutral on Natural Gas after it was up sharply on Thursday. We were right about that.
Gold   is consolidating as long s Gold does not go below $1080. NASDAQ was weak on Friday and will continue to remain weak.
NASDAQ, Russell 2000 and Dow Jones Transportation are leading the market down

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Update For Thursday Sept 24, 2015 Premarket

As expected the market has been going down in step 5 from the highs established  a week ago.

The same is true of European markets and Tokyo market . If you look at the chart of SPY, in the step 5 , it should go below the low established  on Aug. 24  as a minimum. It should go even lower. We expect cash SPX  to go as low as below 1800.
Oil is going lower and that is why Energy stocks are  going lower and Natural gas is also going lower.

Gold continues to go higher after some consolidation  the last 5 days.
Look at the indexes in Europe. They are all down.

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Update For Tuesday Sept 22, 2015 Premarket

As we had pointed out in our Blog of  Sept 17, the market started moving down after making an intraday high based upon no change in interest rates by the Federal Reserve.
The decline in 5th step down to new lows  will happen over a two week period.
The 5th step down have 5 sub steps down also and we may have completed Step 1 down and step 2 up yesterday  or it may do so soon. The larger decline will  now happen in sub step 3 down.


Gold has had a good rally but it is not over yet. There will be some consolidation here
Energy stocks will  go even lower,
Natural Gas is also going down and DGAZ made a new high yesterday and will have consolidation here.
See what is happening in Europe. It will now happen to our markets

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