Please NOTE. In the Bounded or Recursive Oscillators shown, the NO BUY and NO SELL ZONES only apply to INTERMEDIATE Trends, Swing Trading as it were.
Long Term issues are addressed separately.
Again to standardize our approach to using Intermediate Oscillators as a guide,
I elect to use the same model for both GIMBO (PM COMPLEX Stocks) and
DIMBO (DOW Complex Stocks). For speed, unless we are in a TREND CHANGE of LONG TERM, I will simply present these two charts consistently and add in others for your interest. Good Luck. DG.
DOW STOCKS are entering a Bounce Zone. I expect the longer BEAR Trend to become apparent, as I suspect no amount of artificial support will take it back into the 18K area, and perhaps not even into the 17's.
GOLD STOCKS (PM Complex Stocks), as you might suspect are in EXACTLY the opposite position of the DOW stocks re-assuming their Contra-Trend Role,
at first in the Intermediate arena, and later, I suspect in the Long Term arena.
If you have my 321 plan you can see we are far off our first entry point, and will wait until signaled, and Yes, "Waiting is the Hardest Part" !!
Lets move on to another chart. Here CARTEL~BUSTER ! is stalling, but not annhilated as DOW, SPX & General Market.
The STALL in CARTEL~BUSTER ! is making me look for a pull-back to a Re-Bound level perhaps slightly higher than the last low in CARTEL~BUSTER !.
Due to the sick nature of ABX and the Boyz ability to mess with things, i will not make a numerical prediction for the GDX. Again I continue to look at RING as an alternative measure of Gold Stock Pricing.
Now to add some depth of understanding to where the Dow stands now, lets look at a historical view of the DOW Breadth Compilation.
Bottom line here is it took from 1st of the year to Mid Aug for the final distributions / mania to position for this break. To me the likelihood of the Breadth Oscillator climbing back to its 40 Week MA is ZERO, ZED, ZILCH, NADA.
BUT if we look at an Arithmetic Chart of the down, lets see what it would take to get back to the Arithmetic 40 WK MA to reverse this trend, as so many pundits including MA suggest will happen.
Given that it will take a minimum of 2K to climb back to the 10 WK MA and more to get to the 40 WMA, after being -800 so far this week and -900 last week, go figure. Gravity will bring any re-pump attempt back to base.
GRAVITY NEVER SLEEPS. I continue to like DUG and DOG here. I say the Trend is established (DOWN) as the Die(s) are cast. The last time the MACD had a crazy slope as it does is in the beginning of this chart when the pumping started in earnest, to the upside. Funny how things turn around.




