Updated count on the current channel, showing the extended W3 and a proposed W5 to the top.
|Better looking C-wave count|
In mid-December, short-interest should be high in anticipation of the fiscal cliff. Congress and/or the Fed will announce Gramm-Rudman XVII or some other scheme, kicking the can for another 6 weeks and triggering a vicious short-covering rally.
That rally could retrace pretty deep, the .618 is just below SPX 1400. From there we head straight to 1040, with a final spring 2013 bottom in the SPX 970-980 area (June 2013).
Summer rally ...
Fall 2013 wipeout crash. SPX to 400. We will short the tar out of this and then close all accounts, brokerage, bank, credit union, 401(k), punch-card burrito coupons from Taco del Mar, and go plant a 5-acre garden somewhere out on the WA coast.
If you do it, too, maybe we can be neighbors, form the core of the Great Northern Tribe.
This weekend, I'm heading out to the Olympics to hike the Skyline primitive trail, about 50 mi in 2 days. The last time I hiked this was late-October 2010, in a serious fall storm. I had a bit of a solo survival epic up there, a real close call.
|Skyline Trail, October 24, 2010, nasty conditions|