We believe we may have seen the top or should see one very soon. In accordance,we began initiating short positions today. Our model calls for an intermediate term bear market (about 3-4 months) into november 15th. We believe the brunt of the sell-off will be in the nasdaq and the semi-conductors and the commodities and probably less severe on retailers or autos - basically stocks which bottomed in oct, Nov will be hit hard.
In terms of price and time - we expect a brief, sharp correction beginning next week and into Aug 24th cycle low. We expect bulls to buy the dip but it will be a correction and should burn the bulls in september/october time frame.
On top is one chart we are looking to short - HGG. Our labelling is shown. This chart has beautiful elliott wave labels and a classic 4th wave triangle. Wave 1 has equality with wave 5 in time and price.
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