Overheated and near rev limiter – Yes!

But not nearly finished is this stock bull yet! Even though the critical voices are increasing, owing to the overbought indicator situation out there in the analyst’s world, even though a sound correction would be overdue and desirable long ago; in the medium term the uptrends of the most important stock markets are completely intact being far from their final exhaustion moves in terms of time as well as price.

To speculate against the overriding trend may seem to be attractive to many investors because they hope that the stock markets turn down now… but far from it… please don’t do so. Go with the trend and go on buying corrections and consolidations!

A) The seasonality and the post-election cycle are supporting the stock markets into the year 2014.

B) The year-end rally is ongoing already… and this is what technically always lasts till…==> the middle/the end of December.

C) At the beginning of September we recognized that 2013 was going to be a flawless uptrend year.

http://www.gunner24.com/newsletter-archive/september-2013/08092013/. And those years use to close at or very near to the year-end in price.

D) Our GUNNER24 Forecasting System keeps on firing one buy signal after another. Nothing is pointing to an intention of the markets to turn. No overriding important Gann Changing Magnet in the weekly or in the monthly time frame has been reached so far. Concretely that means that the main targets are still to come. Above the markets there is a huge vacuous space that this bull will have to traverse before being allowed to turn!

Two weeks ago for the S&P 500 we pointed to the following buy signal in the weekly time frame:  

„A weekly close above 1750 activates 1820 as next target". A weekly close above the 1750 horizontal resistance will activate the next higher important square resistance – the center of the just passed square – at 1820. This is what the weekly 5 candle up is looking like now:

With two consecutive weekly closings above 1750, this GUNNER24 resistance is broken upwards now rule-compliantly being activated as the target the next higher resistance. Above the 1750 the center of the just passed square is situated at 1820 in the weekly time frame. 70 points of vacuous space…!! See the Free GUNNER24 Trading Manual, page 4, keyword gray fields or vacuum, respectively…that may be reached very fast and quickly and without much defense till the beginning of December if the monthly 1763 resistance on weekly closing base is overcome.

The 1750 is a medium-strong weekly support now. This horizontal may be fallen below on daily closing base – and one timet on weekly closing base. Correspondingly, between 1750 where the weekly support starts and 1711 being the very strongest weekly support there is an extremely attractive buying zone. Following the trend obliges to buy from 1740 on. Whether the 1711 horizontal support, the strong lower square line support is ever going to be headed for again in 2013 is what I dare to doubt. That would be a present for us bulls.

Let’s focus now to the monthly resistance at 1763 and the weekly 1880 main target that is very close to the uptarget in the monthly time frame actualized now:

The monthly 3 Candle GUNNER24 Up Setup in the S&P 500 gave a clear buy signal with the conclusion of the month of August. August 2013 closed above the main resistance of the 4th double arc. Thus the 5th double arc was activated as the next main target of this bull-run. The probability of the 5th double arc to be reached in trend direction after this powerful signal is far over a 75%. By the August close we bought at 1686 with main target 1875.

As matters stand today, the price congruence in the weekly and monthly time frames keeps on being confirmed:  

Main target in the weekly up setup for January 20114 is the 1880. In the current monthly 3 Candle GUNNER24 Up Setup above, the strongest up magnet is at 1888. But that’s for March 2014. There, the next reachable important time line being the limit to the right of the currently passed square, intersects the lower line of the 5th double arc.

On the important time lines we always have to reckon with important tops or lows. The lower line of the 5th in the monthly time frame is the main target for this bull that is supposed to be exhausted after reaching the 5th being likely to execute the change in trend there, at the 5th. I.e. for several months – at least 5 – we will have to experience and reckon with falling prices by and large then.

The strongest phase of the year has begun – gold (and silver). "Yup, right!" EA

Both precious metals are particularly supported from now to February. "Absolutely correct!" EA

November is extra shining – returned a 4.93% on average over the last 10 years. "Yes, it is really strong!" EA

This or about this is what the analyst’s opinions on gold and silver are reading these days. I can only agree all in all! But in 2013 the coming positive seasonal influences at most may provide that gold maintains somehow between 1250 and 1400 without producing new lower lows.

Hmm! At the moment I go on assuming an ABC correction move in the weekly time frame to happen that may lead to 1400 again till January. But then at the latest a new hefty downmove will be going to start that will produce some new correction lows consecutively. The year 2014 will bring new correction lows in gold and silver! The current countertrend since June 2013 is without any force or sap.

No follow through is to be seen after the first upwave from the June 2013 lows = Wave A. On the one hand, at the first double arc no consolidation at the highs took place. That indicates that the entire first upswing from the June lows 2013 is just a countertrend move, an ABC or an ABCDE triangle. The strong rebound from A top at the first double arc shows us that the first double arc is likely to newly provide strong or even very strong resistance. With the expected C top at the first double arc resistance we’ll have to reckon with a strong downswing of the precious metal!

However, even some important supports are visibly being bought by the bulls: The 1*1 Gann Angle = B wave low and the 1272 monthly horizontal support. But the fact that the bulls do not achieve to take the 1350 being the currently most important weekly horizontal resistance is showing the inner weakness of the move since the year low.

The last two week candles are bouncing between the Blue Arc Support and the horizontal resistance at 1350. That’s currently a sideways move.

Furthermore the market has been oscillating around the 1322-1320 for weeks. Depending on the day and the mood, the 1322-1320 is sometimes important support or an important magnet again if broken as happened with the last week candle. 1322-1320 is an incomprehensibly important GUNNER24 Magnet on monthly base. Thus, a daily close below 1302 next week would newly activate the 1*1 Support Angle as target = 1291. That one is likely to hold, and from there up to 1322-1320 should it go again, consecutively! A daily close above 1354 next week would newly make the 1350 resistance become daily target. A daily close above 1354 next week will newly confirm that the first double arc in the weekly time frame will be likely to be headed for.

You may ask yourself what about the 1322-1320? Why is it that important? Well, it used to be a main target in the monthly 13 Candle GUNNER24 Up that started at the low of the year 2005. Here comes a grasp into the GUNNER24 Mothballs – the gold chart and the belonging setup from the year 2009:

Source: http://www.gunner24.com/newsletter-archive/december-2009/06122009/

In these whipsaw markets of the last weeks that might confuse any trader thus leading mercilessly to burning the trading account the professional signals have got their special importance. You get them in the GUNNER24 Gold Trader!

You best register with our GUNNER24 Gold Trader now. That’s where we oversee the optimal entries and exits for you. Especially in the difficult market situations where many factors have to be considered the Gold Trader is backed by the additional GUNNER24 Signals based on the combined 1, 4 and 8 hour setups to catch the optimum entries and exits.

Be prepared!

Eduard Altmann