STOCKS
Now that this cyclical bull in equities is finished we should expect a violent bear rally out of these lows. I went ahead and bought QLD Friday after the daily swing low in QQQ and will be adding another slug after we get a weekly swing low. I expect to exit around the 200 DMA.
GOLD
Gold had a terrific parabolic run and I expect it to drop back below $1,500 within 6 weeks. If the miners climb along with stocks and the dollar begins a fall toward a three year cycle low then I will consider getting back on the gold bull for what should be a very profitable run to $2,000.
DOLLAR
The dollar can't make up its mind yet so I will keep an eye out for any clear trend. I still expect, hope is a better word, that the dollars three year cycle low is still ahead. If not I fear gold will be entering a D wave.
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