Waiting Out the Correcting in Gold and Oil

Gold and oil continue to be the only truly viable up trends at this time. Going long in the broader market is most likely going to end up in frustration as the indices consolidate and grind lower. We believe that the second shoe will drop after losses are consolidated. This should take place over the next few weeks. After which we should have a very nice buying opportunity in place. The most likely scenario to play out will be an ABC correction in the broader market similar to that which took place in June. Take a look at the QQQQ chart below. We are projecting a “B” consolidation leg to form over the next week to week and a half. After which the second and final leg down should take the market back to support where a very nice buying opportunity should be at hand.