As expected , after completing the first five sub steps of the First Step down we had a nice rally close to highs reached on Monday last. The second step up may have been completed yesterday or may do so today . We cannot rule out that DJI may go up to recent highs but other indices will not follow suit, specially NASDAQ, DJT , Russell 2000 and QQQ.
Most of yesterday was spent near the highs so that stocks can be distributed near the highs on low volume. Markets are ready to go down again and volatility will increase sharply.
US labor participation rate was 62.7 %for Dec 2014. This is the lowest participation rate since June 2008. Not only that labor hourly rates went down. How can the market go up when 38% of the people are not even employed?Average earnings are lower by 0.2%.
Chinese and Indian markets will out perform the rest of the world markets in the next two years.
DJI
SPY
IWM Sell signal will occur if it goes below the 15 day moving average
TNA
TZA Buy signal will be triggered when IWM goes below 15 day moving average
GLD Sell signal will occur if it goes below 15 day moving average
SLV It gave a SELL signal yesterday
GDX Sell signal in mining stocks will be triggered when it goes below 15 day moving average
NUGT
UVXY 3X ETF volatility will continue to increase after some decline in the last two days.
SVXY Inverse 1X volatility will start going down again after 2 day rally
ERX 3X energy stocks will start going down again and will make new lows
ERY Inverse 3X Energy ETF
Will start rising again
UNG Natural Gas ETF Till it goes above 15 Day moving average , it is not a buy even though the coldest weather of the year just happened not like what happened last year at this time.Too much natural gas because of frakking industry. Prices will continue to go lower.
RSX Russian market ETF 4th leg up is giving a false breakout. Will go down again in 5th step down
RUSS Inverse 3X ETF for Russian market Will start rising again in spite of manipulation of markets by Russian authorities
YINN Shangai 3X ETF
It is continuing to go up even though Chinese economy is weakening. Chinese Central Bank is providing Stimulus It is going UP in 3rd Leg UP
Most of yesterday was spent near the highs so that stocks can be distributed near the highs on low volume. Markets are ready to go down again and volatility will increase sharply.
US labor participation rate was 62.7 %for Dec 2014. This is the lowest participation rate since June 2008. Not only that labor hourly rates went down. How can the market go up when 38% of the people are not even employed?Average earnings are lower by 0.2%.
Chinese and Indian markets will out perform the rest of the world markets in the next two years.
Religious tensions will continue to increase causing more economic instability.
Russiam markets will continue to decline and Ruble will weaken again as long as oil keeps on declining no matter what the central bankers in Russia do.
Europe has been muddling through for the last year and now it is clear that ECB Central banks will not be able to do anything to save Eurozone. Separation of Greece is a real possibility. European markets are ready to go down again. Deflation is rampant there and soon we will also have deflation. Short term
US Govt bonds will keep on going up and US stocks will go down sharply.
Third Step down will be more ferocious than the First step down So please get ready.
DJI
Will start rising again
UNG Natural Gas ETF Till it goes above 15 Day moving average , it is not a buy even though the coldest weather of the year just happened not like what happened last year at this time.Too much natural gas because of frakking industry. Prices will continue to go lower.
RUSS Inverse 3X ETF for Russian market Will start rising again in spite of manipulation of markets by Russian authorities
It is continuing to go up even though Chinese economy is weakening. Chinese Central Bank is providing Stimulus It is going UP in 3rd Leg UP
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