Sam Collins turns cautious if not borderline negative on equities

While my primary tool for market timing is EW, legacy TA is the main tool of most traders and so it is useful to keep tabs on what legacy TAers are thinking.  I get Sam Collins' Freemail and while I don't always agree with him when my wave count tells me not to, I still think he adds value to the big picture.  He certainly represents main stream legacy TA.  As you can see from his latest post (and the few leading up to it), he is no longer outright bullish.  As you can also see, his thinking is that investors should migrate to "defensive" sectors like metals, miners and oil (which is a proxy for commodities).

These views just so happen to correspond with my view of the DJIA and USO.  If my count is correct, DJIA is retracing its wave 1 down and when this retracement is complete it will be wave 2 complete.  Once that is finished, we should see my long awaited 500 point DOWn day that will tell the herd "the bear is awake".

I expect USO to rally because the wave count says it should but Sam Collin's explanation of "people will move to defensive plays" makes sense as an underlying fundamental (even though sometimes the fundamentals work one way and sometimes the other which is why I never trust them in a vacuum).