The fifth step down started at the top yesterday and will make a new low below the lows established  late August. Not all stocks will go down to new lows but most indices will make new lows and decline will be pretty fast. After the 5th step down has been completed, we will have a bigger rally.
5.1 %  unemployment rate is not real. The actual unemployment rate is above 10% . Oil is going lower and so will natural gas. Gold and silver have been going down in step 2 and 3rd step up is starting today.
China devalued their currency on August 11 but they are not through yet. They will devalue more to new lows  and rest of Asia will devalue their currencies as well. Dollar is becoming stronger in 5th leg up and will continue to go up till it makes a new high. That is not good for US stocks.
We cannot rule out that the 4th leg up is not yet complete  but it will do so soon.
UVXY  started going up after making a low yesterday.

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We thought that we will have a pre-holiday rally on Friday . Instead the rally is coming today. The insiders cannot allow the market to go down till they have sold all the shares they accumulated at the recent lows. Going down does not take much time but going up always takes time specially when it is the 4th step up. This rally will be over today or it may take another  3 days to complete it. Many people shorted on Friday and they will be covering their shorts soon.


Gold continues to consolidate.  Energy related stocks will go up with the rally in the 4th step that is going on.Once this rally is over, we will see new lows in energy stocks as well as in Natural Gas stocks.

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As predicted on Sept 1, the markets went down sharply on Tuesday and then have been moving up to complete the 4th step up . Since we are approaching the 3 day weekend, the markets can continue to go up till tomorrow night on low pre-holiday volume.

After the 4th step is over, we will have a nice drop in the 5th step down to new lows and then we will have a larger rally.

Oil is continuing to go up nicely from recent lows but when the market goes down again, Oil and energy stocks will go down with the market. Natural gas will also go down to new lows as we have huge stocks of Natural Gas compared to last year.

Gold is also consolidating before it goes above $1300 again. Dollar has completed the 4th step down and it is ready to move to new highs against other currencies  in the new step 5th up.

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The market may have completed the  4th step up last Friday or may be on Monday. It is going down in the 5th step down and after making a new low, we will have a much better rally.

On the other hand , the 4th step may not be over yet and we will have the market  go up till Friday after a sharp decline today.



Oil has had a very nice rally in the last few days and it is ready to go down again.

As expected, Gold is moving up again after  consolidation.

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