Update For Friday, March 13, 2015 Premarket ~ Make Money In Up & Down Markets

Friday, March 13, 2015

Update For Friday, March 13, 2015 Premarket

As we had mentioned in our last post, we were in the process of completing 5 sub steps of the first leg down. RUT, IWM completed this on Wednesday morning while the DJI and SPY completed their 5 sub steps down on Wednesday near the close. The second leg up started in RUT and IWM on Wednesday and in DJI & SPY yesterday.We do not expect to see new highs in DJI & SPY but IWM may come close to new highs. Nasdaq can go to recent highs.

We had a nice rally yesterday and it is not over yet with minor declines in between.

UVXY which is 2x volatility is going down nicely and may make new lows soon while SVXY which is 1X volatility is going up . Once the market resumes its decline, UVXY will go to new highs again.

As predicted oil continues to go down and ERX is making new lows while ERY making new Highs in spite of the rally in rest of the market. Oil stocks will continue to go down as we expect oil to go below at least $40 to as low as $33 of 2008. Then we will have a big rally in Oil stocks. Our Energy Motif is going up nicely.

Financials also moved up nicely. We have no Buy signal in Gold or Silver.

Dollar started going down and it will go down more on a short term basis as everybody was bullish on Dollar. It has completed 5 steps up in its recent leg ( or may complete soon)which started in May last year. This has been 3rd leg up and will now be followed by 4th leg down which will last several months. That will be followed by 5th leg up to new highs for the dollar.

Greece and Germany are continuing their war of words. This is happening when the social mood is upbeat in Germany because of rising stock market. What will happen when the market goes down ( it will happen soon ) which nobody is expecting right now ? We believe the best course for Greece is to exit Euro zone and go back to their own currency. All their debts will be gone ( they cannot ever pay them back) and by devaluing their currency, their exports will rise and once again Greece will become a tourist paradise.( How can you enjoy a vacation there right now when everybody serving you is angry?)

As predicted Natural Gas is going down and DGAZ which is 3X bearish Natural Gas continues to go up and will make new highs as the weather is going to be warm for a while. We have once again a BUY signal in DGAZ after a scare of two days when the insiders took it down sharply.

We are in a deflationary environment. That is why PPI is down 0.5% this morning . For the 12 months ending February annual inflation declined 0.6%. Folks we are also in a deflationary environment like Europe. No matter how many dollars and Euros they print, there will be no inflation and no growth to speak of in USA and Europe.

SPY