Oct 30, 2014 Thursday Premarket
We have been pointing out that the rally from lows on Oct 15 was engineered by Federal Reserve with their banking cohorts. Otherwise, how do you explain the no down tick rallies on Monday, Wednesday and Thursday last week and again on Tuesday this week. We have seen more up gaps at the opening in two weeks in QQQ, SPY and IWM than we have ever seen in a 6 month period.
Japan & Eurozone are devaluing their currencies so that they can compete against USA. Look at 10 Year interest rates ( Courtesy of CNBC)
The start of decline has already begun. Look at Twitter with earnings of less than $.04 per share and price of $55( now only $42 and going lower). What about IBM? They announced another $5 billion worth of buy back of their shares. Somebody should tell them that financial engineering will not save them anymore. Remember that Federal Reserve will not be able to save the stock markets down moves any more. Just like in 2008. If they could, they would have stopped the decline in 2008. Once the sentiment becomes bearish, the easiest path is on the way down. However , DJI , SPY and QQQ can go to September Highs before going down again.
Gold and Silver are ready to go down and so will energy stocks. Gold will go below 1180 and as low as $1100
It may take the market less time to go down than it took for it to go higher in the last rally. We recommend TZA, SQQQ , SPXS, DUST, GLDS
DJI Increase in DJI this morning is due to up move in VISA which contributed 100 points to the DJI Index
SPY
QQQ
The following charts were after the close on Thursday
SQQQ
GLD
DUST 3X Bear Gold Mining Stocks Going Up Sharply
DGAZ
We have been pointing out that the rally from lows on Oct 15 was engineered by Federal Reserve with their banking cohorts. Otherwise, how do you explain the no down tick rallies on Monday, Wednesday and Thursday last week and again on Tuesday this week. We have seen more up gaps at the opening in two weeks in QQQ, SPY and IWM than we have ever seen in a 6 month period.
Japan & Eurozone are devaluing their currencies so that they can compete against USA. Look at 10 Year interest rates ( Courtesy of CNBC)
The start of decline has already begun. Look at Twitter with earnings of less than $.04 per share and price of $55( now only $42 and going lower). What about IBM? They announced another $5 billion worth of buy back of their shares. Somebody should tell them that financial engineering will not save them anymore. Remember that Federal Reserve will not be able to save the stock markets down moves any more. Just like in 2008. If they could, they would have stopped the decline in 2008. Once the sentiment becomes bearish, the easiest path is on the way down. However , DJI , SPY and QQQ can go to September Highs before going down again.
Gold and Silver are ready to go down and so will energy stocks. Gold will go below 1180 and as low as $1100
It may take the market less time to go down than it took for it to go higher in the last rally. We recommend TZA, SQQQ , SPXS, DUST, GLDS
DJI Increase in DJI this morning is due to up move in VISA which contributed 100 points to the DJI Index
SQQQ
Posts
3 comments :
Ken,
Does it make more sense to sell SPXS at a loss after a certain period then open another position in SPXS? Or better to go long on SPXS to avoid selling at a loss?
Right now it is better to go long SPXS because the market will soon start going down.
Dr. It seems like all your technical triggers were in place for a buy. Is your "gut" telling you to stay short. I thought your system relied on tech analysis only.
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