Value of Perfect Information

If this right shoulder plays out we should top sometime this week and it wont be a very big moving week. In other words pending no big breakdown on Thursday or Friday this week should be relatively flat. Sometime late this week Thursday/Friday or early next week we should head down.

11/12 to 11/17 should be when we start to breakdown if the breakdown is ever to occur prior to new highs. The setups I am seeing point to us seeing a nice top being put in to bring us down to ~960 SPX or so. From there we should rally to ~1100-1280 SPX. Timewise the decline could take December/January. Above 1086 SPX we need to bail to begin to bail on the H&S idea. Theoretically since the right shoulder should be lower we shouldn’t see price 1080 SPX.

During this whole right shoulder phase the VIX will come down to 22.25- 23.25 level, but not below 22.

SPX Time wise and a H&S

EEM

RUT

OEX

SPX target 960

I hate shorting gold and I refuse to do it. However, if you must at least wait until the arc breaks down. Yes you may not get the top but you wont have a parabolic move going against you. Regardless I think gold is near putting in a short term top if it hasnt already. It is not a good sign when miners lag the spot price. GDX seems to have a nice H&S forming

GDX

GLD- to parabolic isn’t great

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