Validation of Change for the Country……….with update….update2..update3
The last five posts we have made should make our posture perfectly clear. This is a major turn for the politics and economic policies of our country, and it should involve a lot of hysteria, that is how the change is validated.
When this ends, in our opinion there will be a gap move out of this price area.
The EMA ETF Fund NAV was 793 on the close yesterday.
7:52 AM CST
Update at 8:45 AM Covering short Gold position. We have just closed out our short gold ETF “DZZ” position. While gold will probably go much lower, eventually testing the $ 550 floor, for now we want to free up some cash to put into other positions. We will let you know what area we will enter as soon as the screen is completed.
Update2 at 11:26 AM This morning we are hearing a lot about China’s market/economy. In fact four international ETF’s gaped up from islands of market pricing, FXI (China), EEM (Emerging Markets), EWY (Korea), and EPP (Pacific Rim) and are up 5 to 8 percent on the day. In our opinion this is a preview of action here in the US in the next day or two. The two day island on the S&P is 692.30 to 729.57 with a midpoint of 710.94. We are buying in our reallocation under the midpoint in anticipation of the breakout. For the moment we are using the index ETF’s.
Update3 at 12:40 PM CST We just exited the other half of our short gold/long dollar trade by selling the UUP ETF, both the gold and dollar trades have been good, but we might see a little back-off as the perception gains that other countries will lead the recovery. Of course that again is because there aren’t any conservative Republicans in China.