Note what the author of the article below, says about the USD and VIX; Although VIX is showing a possible bottom, it is an Hourly Chart, so a bottom would not necessarily project into a test of the April Hi. Instead, I am seeing a correction, possibly even to the 50% level, before heading down again. Price Action on the Daily Chart is at a Lower Channel Line and Horizontal Support Line, which should translate into at least a bounce up. From there, we will have to monitor for a Balance Point to get an exact Target and Reversal Low.
http://www.gold-eagle.com/editorials_08/vermeulen060610.html
The following Article is confirming what I have been SCREAMING at my Friends to heed, for the past couple of years --
http://www.gold-eagle.com/editorials_08/baltin060710.html
As he notes, "All battles are won BEFORE they are even fought." Buying Gold is the ULTIMATE safe hedge, but he does not extrapolate the coming Mother of All Bubbles in Equities. That is a train that we all must get on, in order to maximize returns --
http://www.thegreatbustahead.com/
So we will watch with keen interest, for signs of the Market Bottom, which I expect to come in no later than this autumn, but possibly even as early as beginning of August.
There is a Target in the S&P Futures at 960, which is about 9,600 in the Dow. I give it 60% odds to manifest. Meanwhile, we can expect a decent Retracement back up to about the 50% level from the Top in April. So a hedge against higher prices, would be to BUY Equities or Call Options at this time, up to 1/3 of our Allocated Capital. THEN be sure to put a Trailing Stop at 50% of profits. We shall see. Charts attached.
Good Trading,
George
georgearies77@hotmail.com
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