We now have possible 5 waves decline off key peaks – see below. Gold/Silver looking good. Trump puts his foot in it with Travel ban – not the first time I suspect! VIX looking good – see below.
2. UK FTSE 100
FTSE is now at 7108 up 1 points. The wave pattern off 7360 is unclear but it does look like we may bounce from here.
3. The DAX
The DAX is now at 11615 down 44 points. We seem to have 5 waves down and may be due a C wave rally to complete a correction. I have an XTREME STOP below the low of 5/one (around 11530).
4. The Dow
The Dow closed at 19890 up 26 points with IG now quoting it at 19830 (-60). We have 5 waves down here also and an A-B formation with a C wave rally due. The main alternatives are that we just fall away now or see a truncated rally. Hence the XTREME STOP – on the Dow below 19760.
5. The Japanese NIKKEI DOW
The Nikkei Dow closed at 18914 down 233 points. The Nikkei is having trouble around 19600/700.
6. Gold and Silver (UK cash)
Gold and Silver both looks as if the uptrend has resumed. Gold is now treating $1200 as support – an important step.
7. China 300
China 300 is now at 3344 on IG. We now have a five wave decline off the secondary peak on 27th December. This looks ominous and the second leg down may now have begun. SHORT positions are now indicated and I will be issuing a BIG CALL when I see something I like. 3180 is key support for now and an Xtreme Stop below here would be one way of entering + the corrective rally may be ending.
We now have some real evidence of a peak in equities and the VIX is very cheap – I suggest those interested looks to buy – contact me if you want more information but you need to understand how the VIX works.
WHO IS JOHN PIPER?