Jeff Pierce's  Instablog

By All About Trends

TESTING TESTING TESTING

Not just levels but highly emotional folks nerves too. Not us though as its all about being on an even keel emotionally and trade size risk management which allows us to bend like a willow tree here.

Yesterday we said:

Don't rule out a back to the scene of the crime to retest those lows to TEST that low. We've seen it all too many times around here folks at turning points be it at lows or even highs.

We're not saying it's going to happen but we just want you to be aware of the potentiality existing. That way if it were to happen? You'd already known about it vs. freaking out because you had no clue, in other words it's the unknown that we sometimes fear. We'd rather it be known to you all so you don't have to fear it IF it were to show up.

Now that you were prepared for this possibility in advance it isn't so scary knowing this was a possibility of occurring now wasn't it? Sure beats being a deer in the headlights without a clue if you ask me.

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As we post this, not only did we get a retest, but even an undercut (say didn't we talk about shaking a tree here?) Seriously though, we are pretty oversold here so its really a hard call in the very short term. One thing I want you to notice is that of Positive Relative Strength (RS) Divergence (green circles) that showed up on this undercut. See it? What that means is that there is more stocks under the surface holding here than there are issues following the lower low from a few days ago in the indexes. Its a positive I'll tell you that.

So when are we going to bounce? No clue and neither does anyone else know either. For us the mode we are in is:

" 90% of this is getting in the zone and 10% is sweating it out while in the zone"

In the meantime, lets see what transpires once the lunch time crowd is done checking accounts.

This has been an excerpt from the premium mid-day report from All About Trends. Subscribers receive daily commentary, real time stock/option alerts and a weekend wrap-up. To learn more about our stock and option recommendations and receive our free report - "How To Outperform 90% Of Wall Street With Just $500/ Week", sample our free newsletter.

By Karen Starich

JP Morgan's earnings report tomorrow will most likely bring no new surprises, but should we beware of the profits? I would not be overconfident about the banks here as there could be some reversal or exposure of the banks accounting quirks and debt value adjustments on October 15th-17th. Saturn has moved into Scorpio now which will bring a shift of inexorable pressure on the big banks to reform their banking practices and attitudes.

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On October 10th Jaime Dimon made comments during his discussion with the Council on Foreign Relations that the banks are strong and America is weak. The truth may be the opposite and we could start to see some revelations to that effect in the near future.

The Fiscal Cliff

Who ever coined that term? There is no such cliff, and any concept of default will most likely be avoided on or near December 26th. Just as Dubai mysteriously bounced back from it's economic collapse (no one seems to accurately know how the GDP is accounted for there, and companies have no obligation to submit accurate accounts to their banks , or anyone). So, America will also mysteriously bounce back from this economic setback and move on with or without the big banks in 2013.

The following is by Karen Starich, who uses astrology to forecast events in the financial markets. Please join our free webinar on October 17th where I will be discussing the astrology of the coming elections, the "fiscal cliff", and economic opportunities for 2013.

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QE3 Was A Blatant Misuse Of Power

By Financial Tap

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The Gold Cycle looks fairly easy to read; once you strip out any biases you may carry. Quite simply, it's screaming Investor Cycle top and warning of a significant decline. Sure when viewed through the idea of endless printing and world crises', one could easily suggest or envision much higher prices before any significant pullback. This type of thinking is actually what drives IC tops, an unrelenting belief that a Cycle will continue higher based on short term speculative interest and a fear of missing another move.

But the facts are that we're very deep in the timing band for an IC top, we have a very bearish COT report, extreme (bearish) sentiment, and a series of technical indicators and oscillators that are at levels seen during IC Tops. Whenever these sets of conditions have presented themselves together, it has almost always resulted in a significant top. The only exceptions have been the 5 blow-off C-Wave tops, and that's very far from where we stand with this Cycle. Could it be different this time? Certainly it's possible; I tend to steer clear of absolute statements or beliefs.

Now on Day 11, it would be highly unusual for Gold to make a new DC high this late in a 5th Daily Cycle. The longest a (5th) Cycle has gone before a top is just 12 days, so based on this history we can assume that the high set on Day 7 at $1,798 will remain the 5th DC top, and therefore the Investor Cycle Top too. With this in mind, at the very minimum a Daily Cycle failure is expected (below $1,738), with an expectations of greater declines, likely below the $1,700 level.

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The miners are following the script I've outlined for some weeks now. Since the weekend report, the 10 and 20 dma were lost on a closing basis and the lower trend-line was breached. The miners are closer to showing a Cycle failure than gold is, as a move below the Sep 26th lows would set the scene for a decent drop into an ICL.

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I really do not have too much more to add regarding our gold framework, I believe I have presented over many weeks a very clear and consistent framework for a coming ICL. As members of this service you all need to plan and act accordingly, I have provided you with a road-map of how I plan to trade this coming period. In the event the framework is wrong and a new upside move above $1,800 takes hold, then a) We still have a decent positions to profit from b) I will likely initiate new trades very quickly above $1,800.

This as is an excerpt from the premium mid-week report from the The Financial Tap. Dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly, as well as real time trade alerts to profit from market inefficiencies. They offer a FREE 15-day trial where you'll receive complete access to the entire site. Coupon code (ZEN) saves you 15%.