All Quiet On The Western Front

I can’t tell you anything you don’t know. We live in the trenches out there. We fight. We try not to be killed. Sometimes we are. That’s all.

Alright, that may sound a bit too fatalistic. After all we stainless steel rats did have a pretty good idea of what most likely awaited us this summer. So it’s no big surprise that we are close to pushing into Soylent Green territory. So, what lies ahead if the SPX pushes above its June highs? Here’s how I see it:

Soylent Blue is officially kaputt as soon as we breach 1131.23 – but quite frankly, it’s been almost academic since the last big gap and push up. My target range for Soylent Green remains the 1160 – 1170 cluster. There is a chance we may push higher, but if we do the ending diagonal theory ends if wave (v) extends beyond the length of wave {iii}. As we are most likely still in Minuette (3) we’ll have to wait it out. Similarly Minuette (3) cannot push beyond 1146, otherwise it would be longer than Minuette (1). Either occurrence would push us into option three I mentioned yesterday – meaning that we are not in an ED and instead are sub-dividing into a forceful third wave to the upside.

So, those are the levels you should be concerned about:

• 1131.23: Soylent Green becomes our main scenario by sheer process of elimination.
• 1146: Soylent Green is most likely a motive and we are in a third wave sub division. Which means the ED is dead and that a lot more upside is possible – there may be the chance that we’ll paint new highs for the year and even need to adjust our wave count.
• 1088: Meaning we turned on a dime tomorrow and breach 1088 – which would breath new life into the Blue Plate Special.

Copper is still pointing up and we’re not going to argue the point. As I’ve said before – copper is calling the shots and when it turns equities will most likely follow suit. Wait until you see the white in their greedy little eyes.

The gold/silver ratio turned where I thought it would. That is a good start but let me caution you that we may see a little dance on the lower line before equities are ready to make a turn to the downside. As a prior precedence look at the April/May period before equities rolled over.

Before you run – after hearing rumors of Tim Knight converting to the dark side I decided to be a good fellow bear and put up a post over on the Slope. Nothing new really for any of your regulars but it does offer a summary of my long term picture plus it’s free, so go check it out!

Finally, something very disturbing occurred to me today and I have to announce with deep regret that Bob The Horse needs to die:

Of course I can’t let this stand, which is why I have already sent out my mutant ninja team to … ahem … ‘correct the situation’ if you will. So, if you have any parting words for Bob, now may be a good time – but better hurry…

Cheers,

Mole