I have a model for how I think the $COMPX is going to play out leading into my suspected "walk away in May" market given the negative January effect. I have to say, the count works out perfectly and I have not seen anyone else's work that looks like this. Of course, I try not to look at other sites too often for fear of getting contaminated with someone else's bad count. It will be quite something if the $COMPX plays out like this. Note, the length of that last red move up was not selected at random. It is the same vertical length as [1] is in the diagram. That which is shown below is just the C wave of the 2009 rally.
One significant hint that this is the right model is that expanding triangle leading up into red [1]. That tells me the move was a 3 wave affair up from blue 4. That dramatic wave 2 pullback that had an a-b-c shape to it gave way to a dramatic impulsive move that hardly had any wiggle at all to it. That wave is now losing steam very rapidly right as it reaches upper resistance. I now expect the next down wave to be upon us very soon and it should be a doozy. It should go down and touch, but not throw under that lower green support line. Then, the final wave up should take the markets up rapidly BUT more than anything, I expect the miners and the metals to skyrocket on that 5th wave move. Some of the smaller players will simply double during that time.
After this, I expect a very significant break down in the markets. As in lower lows than the bottom in 2009. Perhaps a much, much, Prechter-loving low. Don't know what I'm talking about? Read Conquer The Crash by Robert Prechter if you want to know.
I'm hoping metals will show strength during this time as a way of showing the world re-monification but that is just a completely untested theory.
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