My 1st Million At 33 – yes, you can do it too

I didn’t expect new lows to come this fast. Certainly, the April rally is turning into an April rout. Regardless, the stock markets are far from the bottom still.

Both gold and gold stocks seem to have temporarily topped out. The initial downside targets can be $900 on gold, and $32/$33 on GDX. It is still to be seen whether gold will anti-correlate the general stock markets for the current correction. Apparently, they will be synchronized for this time. However, as time goes on, I expect that gold/gold shares to continue to diverge from the general stock markets. The strong correlation of last September to November fall should be increasingly reduced.

Oil and oil shares are quite oversold now. The relief rally is nowhere to be seen. I’m ready to throw in the towels, and yet afraid of selling right at the bottom. I sold out my energy shares January of 2008, but picked them up way too early based on Bill Cara’s opinions. I certainly should have put the stop losses in. Certainly, no one expected such a fast and furious drop in energy.

The markets are not looking good at all. As I have said earlier around the end of last year, playing the counter wave 4 of the Elliot wave is very hard. Now the question is whether we will make a “pseudo” double bottom here in stock markets, or we will slice through support levels and make a new panic low at about S&P 550. This week will be very critical.