Major Decline To Continue Around The World

The rally that we expected on Tuesday lated less than a day. The  ferocious decline in the 3rd step down will continue and there is no respite in site. We are in bearish positions in our Bull or Bear Motif and will go above 100% gain soon.

We have selected  SPXU for our motif  as it is going up the fastest. TZA even declined near the end yesterday .
In spite of the fact that more than 97% of the people are bullish on bonds we had  the biggest one day decline in bond yields. 10 year note reached a low of 1.858 % yield  intraday.

DJI  can go to 15000 to 15500 . Let the market tell us where it wants to go . That is the beauty of our trend following approach. Please do not blame Ebola for the big decline. We gave a SELL signal in early September , 2014

DJI

SPY

SPY  Various Elliott Waves    Third step is not over yet. We are having an upward correction in (iv) of the  Step (3) It will be over soon and then we will get a new low in  step (v) Updated on Oct 17  Premarket

SPXU

QQQ

TQQQ

SQQQ

IWM

TNA

TZA

GLD

GDX

NUGT

DUST

TLT

TMV

TMF

VIX The Fear gauge going higher

UVXY 2X VIX

 Earnings have nothing to do with where the market is going
Here is a comment we will like to share with you dated Oct 13, 2014

“But why would the growth rate of earnings and the US economy be better than virtually every other country on the planet? Linear-thinking economists are extrapolating the Q2 GDP rebound from the negative first quarter as a sustainable trend. But a temporary bounce from a sharply negative 1st quarter should not be viewed as a permanent growth trajectory. The entire planet is suffering from anemic growth due to a tremendous debt albatross. That includes the United States.

To think Q3’s earnings won’t be disappointing, investors have to believe that; weak and faltering global growth, a surging U.S. dollar, the Fed ending a $1.7 trillion QE III program, and the specter of rising interest rates in 2015, will be great news for multinational corporate earnings.

The United States is part of a global economy and does not operate on an economic island. Now that the Fed’s QE programs are ending, global deflation is starting to take over. Equities, bond yields, commodities and home prices are all starting to roll over. Look for these factors to negatively impact S&P 500 earnings in significant fashion this quarter.”  Michael Pento  See

http://tinyurl.com/mtx9g4a