The PnF method is targeting 2410 in the S&P. We have been using PnF since Mar of 09 which has consistently set higher targets and continues to do so. We have also consistently made clear our agnosticism about prediction. And. We are not agnostics (actually Bhuddhists) about this market. Every technical sign indicates the bull market is still on. There are considerations — as always. Namely in the internal dynamics of the market — advance/decline, new highs, new lows, yada yada yada. But. But we believe that price discounts all these questions and the idea of trying to outsmart the market by reading these indicators (and exiting early) is always futile. Price rules, and price is making new highs. That is almost always a signal to buy.
After some consideration we have come to view the recent violent downwave as an aberration. We think that it was mainly mechanical — traders squeezed and panicing, joined by momentum short termers — as well as some heavy funds (known personally). But, while the causes may have been idiosyncratic the technical fact is that the downwave purged the market and set important Basing Points and benchmarks. Nonetheless long term stops remain where they were, and the wisdom of sticking with the system stops is once again demonstrated.
As for the recent election — meh. Now the useless bastards are under the gun and will have to accomplish something which should be positive for the economy. But perhaps we are being unduly optimistic.
When the gold market topped we made a rule of seven analysis which revealed a gold target of 855.01. Here is the link:
Thanksgiving is looming over us and habitually we think of the 47% who experience food insecurity (known in some circles as hunger) so we contributed to our local food bank and invite our readers to do the same: http://www.feedingamerica.org/find-your-local-foodbank/.