Inflexion Point
As outlined in posts yesterday and late last week, markets are lining up as expected and leading to a very important inflexion point. By today’s close or possibly tomorrow’s open, positions should be in place to take advantage of what is likely to happen next. As outlined, an invasion of Ukraine is unlikely. Oil prices topped. Stock market having one final bounce before rolling over. Being takedown Tuesday, gold and silver are correcting sharply.(The last two sharp corrections were excellent buy points. Both the M.O.A.R. and Back Up The Truck led to much higher prices afterwards. Today will as well! Having correctly anticipated the timing and direction of stocks bouncing, the one aspect that may not play out exactly, is the magnitude of the bounce. Yesterday, I called for the NDX(NASDAQ 100) to possibly reach 15,000. That may be more than this very weak market can manage. If the averages close on or near their highs today, I won’t be waiting around to make my moves. First, use this morning’s correction in gold and silver to add there. Second, either the NDX reaches 15,000 or, if stocks are up at their highs of the day just before today’s close, get out of any longs and go short stocks. The “Two Themes” for 2022 are about to kick in, big time!
CM, I happen to agree with your thesis regarding the PM and SM. Thanks for your input.
My pleasure. Discretion being the better part of valor I’m not waiting until the close. I may leave a little on the table if the rally lasts into the morning but the bounce is weak on the charts and Biden is going to comment on Ukraine in a few minutes. If he confirms troops are pulling back there may be a final surge into the close. If no confirmation they may selloff. Getting out while the getting is good.