Almost ready to run back up.

20140727: Almost ready to run back up. The Dow when up to 17,140 at its recent high. The correction I predicted in last week's commentary then began, right as predicted. the current low is now at 16,915. I think it will go lower. I'm looking for it to touch the Fibonacci support I have on the chart at 123.60%, for a value of 16,851. That's only a few more points down. From there I'm expecting a bounce to resume the run back up. An alternate count would be for the correction to stop at the SunnyBand without reaching the Fibonacci line. The MidLine is currently at 16,926.47. That could stop the downfall in a point or two.

What to do? As for me, I took profits on the red candle that touched the SunnyBand and am now ready to buy back in to hold for some more run up.

20140722 Sunny Side of the Street Predictions

Both the S&P and the Dow are extremely overbought. That doesn’t mean it will stop any time soon, though. Gold ran higher and higher for years until September 2011, and then it retraced from nearly 2,000 down to its current 1,298. The run up in Gold had Goldbugs everywhere buying at higher and higher prices until eventually they were losers. And, of course, it is human nature to buy at the top, because then “it’s a sure thing.” Now, Gold is at its 61.8% Fibonacci retracement and could easily turn back around and start back up. That’s what I would expect: Gold again at about 1,600.

People in the general populous would not recognize that this simple Fibonacci level could lead the S&P and the Dow to take their own retracements back down. But, Gold is the inflation harbinger that people buy when the markets look scary. But, which is the chicken and which the egg? To my mind it’s neither, it’s the math.

The Dow is currently just inches away from its 161.8% extension from the retracement that began in January 2014. When it gets there, the price level is 17,287 and it will probably be reached within a few days to weeks. From there I expect a small correction, probably back down to 16,844 before more running to the upside. The Dow has stayed solidly above the S_DMA for months and shows no sign of falling below the S_DMA.  If that happens, expect a correction of about 200 points.

Not much to say about the eMini S&P. It is on the same track as the Dow. I expect the eMini to hit the 2,000 in the near future. It too has stayed solidly in the upper half of the SunnyBands, well above the S_DMA. The 200% Fibonacci extension level is at 2,053. We can expect to see that soon.

Dow Jones Projections 6/26/2014

INDU (Dow Jones Industrial Average) Projection (6/26/2014):

First I anticipate a drop down to the 16,602 level. Then a bounce from there up to 17,566. This is on the daily chart, so it could take some time to develop. Looks like the drop could take until mid-August, while the ride back up could take until the end of September. Don't hold me to the dates, but I'm solid on the price ranges.

Next Dow Stop 13,400

The Dow Jones is positioned to finally break through the overhead Attractor at 13,000. Of course, the long-term target is 14,000, but that will only come after some backing and forthing. The next square (Gann number) is at 13,456, with the actual 14k target being at 14,161. Take a look at the chart on www.moneymentor.com by clicking on Sunny Side of the Street.
Happy Trading!
Sunny

New Stop-Off at 11,500 on the Dow

It now looks like the next stopping off point is at 11,500, before the Dow turns and tackles the climb up to 13,000.

That sounds pretty low. But, the current run down looks pretty deliberately headed for lower territory. And I think there is a bottom to be put in at 11,500.

Dow set for another ride up to 13,000

The Dow Jones has established support at 12,271 by bouncing off the line and continuing on upward. It is likely that it will bounce off the 13,000 line and head back downward, but here's a free 600 points for you by riding the wave up to 13,000.

Response to iPad

Regarding politicians complaining that the iPad is destroying jobs, like libraries, bookstores and all book-related jobs--
Here's my response:
When Gutenberg first started printing books, the public was all up in arms because no one would use their memory any more. Up until that time books were handed down through generations of story tellers. Well, look where that got us. We are just now on the forefront of seeing what will come of the new innovations. Hooray!