I was wrong about short term dynamics

When gold collapsed, I imagined they would flow into stocks. Whats happening, I think, is that gold bulls are really stock bears, and they're selling gold to short more stocks..

http://www.elliottfr...ebinar_page.htm

When gold collapsed, I imagined they would flow into stocks.

Whats happening, I think, is that gold bulls are really stock bears, and they're selling gold to short more stocks..

the entire gold market could flow into stocks and it would budge an inch... but good call though early on the local gold top. targets?

If you had access to my blog, I posted a fractal chart that showed to-the-day that GLD would start cratering. I didn't have it aligned to the proper vehicle (stupid mistake).. was using GOLD as proxy instead of GLD. GOLD did top on schedule. Anyways, I expect 10% correction from the top before a bounce, then down about 30% down from top afterwards. And you are right about all the money in gold barely budging the market. Thats why I think the market will still go up. Bears don't wanna give up.. thats the way I see it.

Bears don't wanna give up.. thats the way I see it.

Exactly the opposite, the bears got fried over the past 2 days and the market is simply collapsing onto its own weight. There were many put option sellers yesterday, they had to also cover in the afternoon. Technically, it was a stretched market, but it kind of overcorrected for a pull back, you could say new lows are coming due to the volatility a bit. The Fed is trying to kill the commodity complex, they reduced the repos today after weeks of pumping, the bear market sectors energy and materials led the decline, this is still a bottoming market, imho. I think the market is refueling ahead of the EOQ, especially if these lows hold tomorrow...

Well I only play the odds, not how I feel. And the odds say there's more chance of upside than downside. Doesn't mean we've hit DA BOTTOM, but a few weeks from now, we should be higher. Few positives for the day: 1) BKX didn't crater 2) HGX didn't either 3) NDX wasn't leading down by much Few negatives I don't like: 1) Dumping before OPEX - that always spells trouble in a deeply oversold market 2) Making trip #3 to the lows - triple bottoms are rare 3) Fed is too stupid to release news and follow it up with another good news the next day