Namely, big change of tune and ending of this upwave in the hard assets. That howling at the full moon you hear is investors and traders moaning at the the abrupt change.
Not so abrupt in the Dow where the sideways theme within a downtrend continues. And the current trend of squirrel, or bungee markets continues.
Wave 4 (5) continues unresolved.
The basic pattern of the Dow continues in doubt. It’s broken out on the upside, on the downside, with a rally to the breakdown line, and it may resolve into a trading range.Nevertheless we would not be thinking of buying any stocks here — with the usual exceptions for special situations.
Major wave ending in the metals and commodities. The CRB is nowhere near the stop.Traders would have been out three days ago.
Investors (and traders) who find these takedowns annoying can alleviate some of the pain by using the new highs variant of the Basing Point procedure, as explained in the 9th edition and the StairStops eBook.
In the game of musical chairs at the gold pit the players edge from chair to chair and then the music stops and the tears start for the slow.On the other hand if you are a long term investor you watch the down wave with interest knowing that the result will either be you position gets liquidated with a profit or you will be able to ratchet up your stop when the major trend resumes.
The basing point is illustrated.
That howling at the moon was increased in volume by shorts who lost their shirts (and shorts) when the dollar turned and bit them. Hard.We have frequently remarked that when the dollar turned it would be like a rocket with vicious consequences.
The only way to have avoided this bear trap was to have been plugged into the real time markets where it showed up in the real time trading.
Tighten your seat belts bumpy weather ahead.