Gold Update To Weekly Inverted H&S 2084.90 Target

$GC_F Gold Futures Daily Chart

Gold Futures Daily Chart update, after testing the Weekly Neckline of the Inverted Head and Shoulders from the original September 12, 2012 post. Long term gold still looks in tact of breaking the neckline. It was a substantial rally off the right shoulder lows 1526.40 all the way to the neckline high of 1804.40. So far this pullback is extremely organized in a downward channel. Note: value building within the 1700-1720 range. A break of this range will prompt an initiative type trade idea, and in result take out the downtrend channel, signifying the trend is apt to reverse. The "H" and "HH" shown on the chart above is a range where gold could find some minor resistance. Keep in mind the weekly time frames are in charge, and this post of the daily is an idea for those who missed buying the right shoulder an idea for entering gold long, stopping under the 1700 level, buying on a break of the value range high. If 1700 is seen I'm anticipating major support against the 1642.40 price seen on the weekly chart. 

Cat Caterpillar Long Trade Idea

Cat Daily Chart

I like Caterpillar Long here targeting 88.94 and the gap from late September. Notice the volume beginging to surge. Also breaking out of small balance

S&P500 Multi Year Correction Expected

S&P 500 Monthly Chart

Looking at the S&P 500 monthly chart here (long term) this index has been in a massive bull rally since the late 1980's. For close to a decade the market pleased investors as the rally resumed to the upside but as a result started to become more volatile due to the birth of electronic trading. The S&P 500 ended up putting in a high in March of 2000 of 1552.87, and corrected/retraced exactly 50% from the March 2000 highs finding lows of 768.63 in October of 2002. This pullback gave investors a chance to reload/enter long on their investments or 401k's to target the March 2000 highs. As this is a longer term chart we are looking at here, we find out 5 years later those March 2000 high targets were completed. As a result of the S&P putting in new all time highs, smart money investors and traders liquidated into the completed objective i.e. a break of the 1552.87 highs. As a result of the objective completing this created an excess, false break high of 1576.09. Known as the 2007 high many of our family members and friends are well aware of the nasty pullback we saw for 2 straight years of selling pressure. Many investors and people with 401k's saw their life savings and retirement diminish in front of their eyes as they were shocked at the continued selling pressure. After all the stimulus money etc. was pumped into the economy, the S&P found support putting in lows during March 2009 of 666.79. At this point the markets began to dead cat bounce as unemployment, though high, was showing some signs of stabilization. Now its October 2012 and markets have been in dead cat bounce mode for 4 years. Though the markets have been rallying for 4 years now its imperative to understand that this rally is one to sell. This is a Sell Mode Bias Rally, meaning the rally will more than likely not continue much further and undoubtedly not take out all time false break highs of 1576.09. Money managers, Institutional Investors (if wise) will understand this and begin to unload long positions or flatten up and sit on the sidelines, though hedge funds will aggressively begin selling short the market as a whole expecting a serious correction to the downside. Well, if they are not in my opinion they should be. My Key Reference Area "Wop" Window of Opportunity to sell the market has been entered. The Wop range is 1437.11 -1474.25. The Current S&P 500 high for October 2012 as I write this is 1474.51 (1) quarter 0.25 cents above my window and we are currently selling printing 1408.42. So the "Wop" did it's job by putting a lid on this rally from the 666.79 lows. As the market enters the "Wop" short trades can be placed with stops above the false break high of 1576.09. Or if you can't short the market long term 401k's should be liquidated into this area i.e. flatten/sit on the sidelines. With the S&P 500 moving into this area and seeing selling pressure active, (entering "Wop" and target hit) this gives us a very scary downside objective of 448.78. All those that say this can't or won't happen, are the ones that typically are trapped in the market buying false break highs like in 2007. Who would have ever thought we would have printed a 666.79 low in March of 2009? Many investors and market experts didn't think we could see those kind of numbers but we did. The month of October is a very important month for the market. A monthly close less than 1422.38 signifies that the trend is apt to reverse and that the bears have regained control of the market. If this occurs we will have a resistance range from 1422.38 -1474.51 and in my opinion will begin attacking the 2012 June low of 1266.74 to start the larger time frame trend-change. My overall expectation, to some, may be far fetched but to me I would not be shocked at all if 2013 will be token-ed the 20th century depression or crash similar to the 1987 crash. I feel obligated as a trader to warn my family and friends what the outcome for the next few years could be. There's a lot of hard working individuals our there that contribute to 401k's and I would hate to see their accounts get cut in half over the next year like so many were in 2007-2009. 

Target complete Emini SP Futures +51.25

Original Post Shorts to defend KRA 1456.50-1460.50

UNP Short Trade Idea (Union Pacific)

Short's To Defend With Downside Target

Crude CL Futures Daily Bullsih "W" Pattern

BA Boeing Falling Wedge

Wal-Mart Ascending Trangle

CL Crude Oil Daily

Stopped Out on DE

Stopped out on the Deere Trade. Though DE is still in long term resistance the pattern has been violated so I need to see a new setup here into resistance to try another short.