Market update, TVIX update

The DJIA was up all day while the $COMPX was off 50 points or more.  That is bearish divergence IMO folks and it spells bad news for the markets this week.  The recent jobs reports sucked so bad that several market pundits could not believe the data.  To these people only good data is possible even though the mechanics of a pump and dump operation require that the crash be just as horrific as the mania was good.  I think the fed is pretty much out of gas.  By that I don't mean to say that they don't have any tricks left up their sleeve but rather that nobody will be fooled or impressed by them going forward.  The audit the fed bill vote should prove very entertaining in the coming days as should the Scottish referendum on secession.  Do you see the connection?  Both are attacks on the concentration of power.  Both want to destabilize centralized control. It's happening right in line with my long standing prediction that peak credit will lead to peak con.

Dear Scottish people, let me tell you this: If they weren't getting something from you in the deal, the UK would not care if you stayed or not.  The fact that the con men care deeply can only mean that they are getting something in the deal even if you don't know what it is (hint: more Marks and Patsies holding their worthless currency).  Break away from the UK but then do yourself a big favor: get yourself a new constitution with all kinds of rights and freedoms for your people and for corporations.  Start up an honest money supply and kick funny fiat money to the curb.  Get rid of personal taxation and go to a consumption tax.  You will be swarmed with businesses wanting to set up shop in your neck of the world.

In this recent TVIX post I suggested that the next battleground could be in the $3.20 range.  We are not there yet but we have moved up off the bottom and the hockey stick is starting to turn up.  The chart found resistance at the 23.6% fib after a 5 wave bounce within a rising channel.  So I would expect a small pullback or sidewaves move tomorrow and then the chart should go up to test the 38.2% fib @ $3.20 ish.  It could do many things but this is the next one I would keep my eyes peeled for.  I personally expect that it will go higher, especially after the 20+ % breakout of DRD gold.  Gold has been trading in opposition to stocks of late.  I expect gold and miners to follow DRD's example and JNUG could be just as extreme.  Hang in there TVIX longs.  I smell a very high chance of an impending payday.  But do use stops!

Whatever you do, don't stay in TVIX if it falls below $2.60.  I do not think it will happen because the markets look really, really tired.  But that is the pain trigger a smart gambler will not cross.