The Dow can either reverse right here or breakout higher from its wedge.
Since the trend is already up, a breakout to the upside is more likely. Such a move brings in a forecast to around 31,300.
The daily chart below has the last part of the wedge expanded and posted at the bottom of the chart.
Important to note is the location of the Gold (GLD) bull trap.
Recall, the firm went heavily short (via JDST) on that Friday and had to wait over the weekend to find out if the analysis was correct.
This excerpt (emphasis added) is from the November 7th, update. It was a Saturday; we’re already short and waiting.
So, at this juncture, this firm is taking the opposite side of the trade with its re-established position in JDST.”
The following Monday in the early morning hours, gold prices collapsed. The bulls were trapped.
As the market opened with gold down hard, the Dow and S&P both spiked up in what’s now a terminal wedge.
‘Terminal’, because this type of price action typically comes at the end of a sustained move … up or down.
At this juncture, the firm is positioned short gold (via DUST) with a tight stop (not advice, not a recommendation).
The stops (two trading accounts short) are not mental, out of the market but are actual open GTC stop orders.
That way if there’s an internet upset or power grid problem, the in-the-market stops will provide some amount of protection.
All of the above may be an excellent analysis of current conditions.
However, behind the scenes, the macro or the real agenda, is deadly serious.
The ‘plan’ all along is to destroy (and subjugate) the middle class. That’s been in the works for decades. Neo Feudalism.
ShadowStats reports here, real unemployment spiked to 35% early in the year and has come down to just over 25% now.
That level is still above 1930s, depression-era numbers and we’re just at the first wave of middle class destruction.
Throw in more economic turmoil and a stock market crash. Then we have ‘fait accompli’. Only a tiny remnant could be left unscathed.
Note the picture at the top: The haves and have-nots.
From The Money GPS: ‘The chasm in-between the haves and the have-nots, grows every single day’
Self employment is the key. It’s not a guarantee but it does offer flexibility and most importantly it may offer some extra time.
The above statements may seem harsh (possibly outlandish) to those not yet awake.
Based on yesterday’s analysis, the expectation is for gold and the miners (GDX) to continue lower.
If they do and the markets (Dow, S&P) continue higher, it’s just one more indication the time for reversal is near.
Charts by StockCharts