Volte Face

Not for the first time I have had a complete change of opinion the stock market and stocks are going up and probably rocket up. I have amended the trades accordingly

Well the FTSE100 has in fact traded as high as 5239 this morning but I remain convinced that the short still stands and have not closed this trade. Perhaps I'll be punished by the market for moving my stops but if you have faith you have faith and we remain short

The FTSE has actually crossed above 5210 but it hasnt necessarily behaved counter to its cycle so we shall remain short and lengthen the stop to 5230.

The FTSE100 is showing signs that it will sell off so we have opened a short trade at 5171 with a stop at 5210. This trade is also added to the list at the bottom of the blog. On a more general note retail sales came in with a poor figure but the market is doing its best to shake it off. I think it will fail to do so and that lower prices lie ahead as has been made amply clear by the nature of my blogs over the last few weeks. happy trading.

Fear not..Mr Bernanke has spoken.. Apparently everything is okay.. What a surprise
I'm sure the entire financial world was waiting with baited breath for Ben to tell us the system was on the edge of implosion.. But no everything is okay. Phew! ..With that we have a market rally.. Gold sells off..the fools...Being wiser than the average market participant we remain short the stock market and long Gold.

Please note that I have added trading lists for the GLD ETF and Apple for future reference.

As I type the NDX100 is trading at 1808 and taking a look at the cycles it occured to me that the next tradable low is going to be around the 1700 area. I expect that this descent will be fairly rapid and we'll trade here some time later this week. so we shall remain short until this point on the short term trade, the long term trade will remain short with a stop at 1930...P.S. it looks ugly.

I have had the opportunity this weekend to take a closer look at the Gold ETF symbol (GLD). GLD is currently trading at $119 and approaching its all time high of $122, I believe that this summer will see Gold truly soar as the next phase of the financial crisis comes home to roost.
It's laughable when watching Bloomberg or CNBC after a stock market sell off
that occurs at the same time as a fall in the price of Gold. The anchor will say Gold sold off because of a "flight to quality"..."the quality" apparently being US treasuries. Hah!. So an asset with intrinsic value, a store of wealth for generations is less quality than the debt of a government with its head asleep on the printing press ! Do we really think that a government can flood its economy with a trillion dollars of paper and suffer no ill effects ?
This is nonsense. Take my word for it this sovereign debt crisis is not nearly over with the spread of the contagion to Hungary. Ultimately this is coming home to roost in the US. When that happens, as it will expect complete financial market meltdown and for Gold to soar.
My cycles suggest that GLD is going to have an incredible summer I expect it to trade at $145 before it has any meaningful sell off. That’s an 18 per cent appreciation on its current price.
Gold , Silver and other precious metals are the only assets capable of surviving the coming financial storm. The time for that storm is now. Expect the crisis to escalate over the coming weeks.

A brief word on Warren Buffets testimony on Thursday. I thought it amounted to an admission of moral bankruptcy. He more or less removed himself for any responsibility for the financial crisis or indeed for Moody's lousy ratings. They needed to "tweak their models" he said. What utter nonsense, he must have known that they were receiving commissions for their work and that unless the ratings issued were "AAA" then no further work would be headed their way. It was their duty to issue AAA ratings on CDO's and whatever other products they found in front of them. He knew.. He knew that the whole system was crooked, he isn't the kindly grandfather figure he tries to make out... what he is is yet another wall street crook.

Yesterday was extremely unpleasant. All of the major indices were hit first by news that Hungary may default on it's sovereign debt and then by a bad jobs report. All the news is bad at the moment. The high on the NDXfutures yesterday at 1903 is a high that I believe will stand for some time. So we shall remain short both on the short term and long term time frames. One additional note: I have made a major break through in research during the middle of last week. I mentioned on initiating the blog that the site related to ongoing research which is probably now complete. This will result in more accurate trading so expect profits to escalate in coming weeks. I'm morally certain that lower prices lie ahead.

Currently trading at 1852. I don't think there is any further upside in this market so we remain short. I do believe that this market can go as low as 1400 in due course probably quite rapidly.