The US Dollar Index has rallied impulsively for 12 consecutive weeks and appears to finally have begun a second wave retracement. After the dollar broke out of a channel containing the impulse, I can then go back and Count the structure. The most probable count is an impulse containing both a third annd fifth wave extension. Expect the index to resume a corrective decline into … [Read more...] about The DXY Begins Wave 2 Decline
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S&P 500 Futures Bullish Invalidation
The S&P 500 index gapped open today and in the process invalidated a zigzag correction. Probability now greatly favors that the structure is the beginnings of an extended impulsive decline to fresh new lows for the cycle. Bear in mind, this is a futures chart. The purple line is a contract break, while it appears that wave 2 exceeded the start of wave 1 in the now invalid C … [Read more...] about S&P 500 Futures Bullish Invalidation
A History Lesson Before The Largest Transfer of Wealth in Human History
As we inspect the value of the Dow Jones Industrial Average against the value of real money (Gold), we find that the purchasing power of the US Dollar is equal to that of the 1929 stock market peak. Meaning that people are no more wealthy now than they were nearly 100 years ago. Notice, that I’ve take the last known value of the dollar against gold at $1=20.67ths of an ounce. … [Read more...] about A History Lesson Before The Largest Transfer of Wealth in Human History
All Time High: Nasdaq 100 and the Dow Jones Utility Ratio
In this chart we can see a ratio between the Nasdaq 100 and the Dow Jones utility ratio. The Nasdaq 100 is filled with highly speculative securities while the Dow Jones Utilities are stable assets which generally have a long history of consistent dividend returns. What this ratio shows us is that the herd is at an all time high of interest in speculative assets instead of … [Read more...] about All Time High: Nasdaq 100 and the Dow Jones Utility Ratio
Gold: The Long Term Entry of the Year
Those that follow me know I’ve been touting Gold for a hot minute, the count has slightly changed a few times but all roads lead to the same outcome. A three wave corrective wave 2 retracement before a rocket explodes off the pad. That’s exactly what we are seeing here with gold. It was a long patient wait, but the moment finally arrived. Gold is bullish. Gold has begun a third … [Read more...] about Gold: The Long Term Entry of the Year