Our friends at Elliott Wave published three charts I wanted to share. The first is my favorite, because it shows that bears have now gone extinct. The investors “intelligence” survey illustrates that advisors haven’t been this bullish in a full seven years. Looking at this chart, it seems to me that extreme bearishness is a better pivot indicator than extreme bullishness (notice how many times the bullish percentage was high, but the market kept chugging along).
Having said that, the wave count does work rather nicely for the NASDAQ (and if AMZN and/or AAPL disappoint on Thursday afternoon, things could get really cooking).
As for precious metals, we are ostensibly in wave (4) right now, and the boys in Gainesville think gold could sink to about $3350 or so. I’m thinking about $3,500 myself, and that’s only important to me inasmuch it’ll help signal for me when to get back into palladium (PALL).
