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Dec 1st - SP 500/Gold updateDavid Banister A strong pre-market open has the SP 500 futures at 1194 and climbing. This looks and smells like a 4th wave correction that has neared an end. Once again as a reminder, on November 6th I forecasted 40-70 point correction in the SP 500 from 1225 was likely and over multiple weeks. This works off the overly bullish sentiment, and allows the economics to catch up with the markets huge move from 1040-1227. 4th waves are mildly bearish from the sentiment side of things. What happens is that the crowd of investors begins to read the same headlines they ignored before, but with a bearish attitude. In other words, all of the European problems they worried about in the Summer wave 2 correction, and then ignored on the wave 3 rally… re-appear but this time everyone views those same old problems negatively. 4th waves though are NOT as bearish as 2nd waves, and that is why my forecast was for a milder corrective drop. During the 3rd wave up from 1040-1227, those same problems were there… but everyone’s slant on them is positive, and that my friends is a crowd behavioral pattern. We had a 54 point correction, within my 40-70 point allowance. We re-tested the lows this week and have bounced up, so again, it appears that this 4th wave is taking the form of an A B C Flat. This means that the A wave and the C wave both bottom at about the same pivot (1173/74). I look for Wave 5 up to be confirmed with a move over 1200 on the SP 500, and my initial targets are 1285, but more on that later. Gold and Silver are heading higher as I’ve been indicating they would after their consolidations and 4th wave in Gold ended. We continue to look for 1480-1525 on Gold and 32-34 on Silver intermediately. As I said last week, make sure you have some Gold, Silver, Resource, Oil-Gas stocks or exposure in your portfolios… we do at Active Trading Partners, and our stocks have been soaring during this 4th wave down. AAU for one example we picked at 2.74 about 5 weeks ago, they are now at 4.50 and breaking out big. Up 70% in 5 weeks. Consider joining us! ### David Banister David A. Banister is the founder and Chief Investment Officer of Active Trading Partners, LLC. David uses his unique methods of forecasting major market turns in addition to Gold, Oil, Sectors, and individual stocks with counter-intuitive methods he has developed over twenty years of investing. David can be reached at dbanister@cox.net. The opinions of the author are his opinions only and not meant to be construed or interpreted as investment advice. Markets are extremely volatile and you should consult an Investment Advisor or Professional whenever possible. 321gold Ltd |
