Sunday's, "Framework of a deal with China," news gapped the major indices up today, but the proof of the pudding is still to come, as most indices have stalled sideways-to-down since the Open. Without the breakdown described in the weekend Update, there is no reason to short the market, so the "no harm, no foul," risk-averse posturing remains my most favored strategy pending survival, over the next few days, of the recent market gaps-up. We could just as easily see a melt-up into year's end as the bullish resolution of our reversal window that lasts into the conclusion of the Fed meeting on Wednesday. I'm too old and cautious to guess which way this week ends, and yet too greedy to not take a firm stance, one way or another, when the dust settles. So bear with me, while the market sorts out its demons, takes a stance and then runs, up or down, into Christmas and the new year. Gold & Bitcoin One is getting extremely oversold and may be ripe for at least a tradable pop (or better yet, a Wave 5 to new highs) in a few days, while the other is coiled and like stocks, may be primed for a run into year-end. I'd be guessing on both with a trade today so lets give these two asset classes a little more room before jumping back in. Yes, I'm spoiled with the massive gains we saw earlier this year in precious metals and want something just as promising for my next trade. When it appears, you'll read about it here first. Gold A potential Wave 5 Buy Signal in the making. We rode multiple Wave 5 signals up throughout the run from August into October, turns out they were part of a third wave, leaving at least one Wave 5 up still to come, starting from around one of those three Fib retracement levels ($3,650-$3,950) in the days/weeks ahead.
