FOR THURSDAY: (11/3) Weak cycles overnight inclines us to sell and take profits quickly in the morning for the S & P. Crude looks lower into Friday and T-note higher so we’ll buy dips there. Dollar needs a 2-day bounce before it can be resold.
GOLD COMMENTS: (11/3) Have to wait for a calm pullback into Friday and if the market can’t fall much, it still may be a buy for a 2-day pullback. Gold hit minimum target of 1308. Upper target for a 5-wave pattern is to 1317 may not come in and would cement the bullish count. If the market is really strong, it won’t take out 1290. We do have a peak today and a pullback into Friday. Gold bears would have to consider selling the upper pattern completion at 1317. We cannot ignore technicals here. Next major channel resistance comes in up to 1340. If we are correct about the S & P falling to at least 2000 this fall and the dollar going to 9300 or 9090 into Christmas, we may have to soon throw out any bearish gold scenarios. In the end, given where we are in the move, selling the upper pattern completion and holding into Friday may work today but not sure we have the stomach to trade too aggressively during this bizarre political week.
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