Good evening to you all!

What we are witnessing in the financial markets now is the propagation of a financial bubble virus.
The hot credit is sloshing rapidly from one asset to another causing massive inflammation of the price.

The virus is spreading from market to market,
rapidly moving prices and then on to the next one.

Nobody is going to like what I am about to say!

I have been a big precious metals bull for the last few years.
Back in March when the metals got walloped by massive selling,
I was uber bullish!

But now forward on 5 months later and we see,
that silver has rallied 248% off the march lows.
It went from an 11 year low,
to a 7 yr high in 5 months!

Gold is up 42% in the same time.
The S&P is up 52%.
Dow up 50%.

And if course NOW the media suddenly thinks its time to buy…………….

By the way, on the flip side.
EURUSD is now at a 2yr high.
USDJPY is at long term support around 104.00.
And Cable is hitting an 18 mth triple top after a three wave rally.

This is now a verifiable everywhere bubble without a doubt!
And the USD is poised to make a comeback in a big way.

And I fear that the metals market will again suffer the consequences of a fast money exit over the next few weeks.

DXY COT data.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD pipped above the previous high at 1.1908.
This has prolonged the topping formation by a few days as wave (iv) now takes an expanded flat pattern.
The rally into this sessions high as developed into a five wave pattern now.
With possibly one more high to complete that top.

Tomorrow;
Watch for wave ‘v’ of (v) to complete soon.
The next time we break 1.1694 it will signal the top is in.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

The rally in cable is faltering seriously now.
With bearish momentum divergences on both the hourly and 4hr charts.
The pattern is getting quite compressed to the upside also.
This action suggests the end of the line is in sight now for wave ‘C’.

Tomorrow;
The price did make a very slight new high in wave ‘v’ of (c).
So the minimum target has been met.
Watch for wave ‘v’ to top out soon and then turn lower into wave [a].

USDJPY.

USDJPY 1hr.

USDJPY 1hr.

USDJPY daily.

Wave (c) of [ii] seems to be building a low over the last few sessions.
The price has now retraced 50% of the rally in wave [i] at todays lows.
So we are in a perfect situation for wave [ii] to complete now.
A spike higher off this low that breaks above 106.46 will signal wave [iii] has begun.

Tomorrow;
Watch for a five wave rally higher to begin soon.
we may even see a small higher low above 105.29 by tomorrow evening.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The DOW is so close to hitting that 27632 high now that it almost seems inevitable.
The market is drawn to it like a moth to the flame.
If that June high breaks,
then the short term count is invalidated and I will have to start from scratch.

Tomorrow;
The drop into wave ‘3’ must start immediately.
The June high at 27632 must hold.
I need to see a rapid decline begin off this level to confirm that wave ‘3’ is underway.

The DOW is hanging on a knife edge.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

The rally into wave ‘v’ has continued today with another new all time high.
The extension in wave ‘v’ is looking stretched and the price action is becoming choppy again on the hourly chart.
The upside is now limited,
and I am preparing for this rally to come to an end very soon.

Tomorrow;
WAve ‘v’ will fill the trend channel at the 2100 level.
At that point I will be looking lower to begin wave (4).

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Crude has held below the top at 43.50 today as we look for another turning point into the next leg down.
The main level to focus on in the short term is at 38.87 where wave [iv] completed last week.
Only a break of that level now will be sufficient to focus on the downside.

Tomorrow;
watch for a further decline into wave [i] down.
38.87 is the minimum target.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

Maybe a new all time high is an inevitability at this point,
but any new high will be impossible to hold for long.

I realize that I am a beaten man when it comes to the stock market rally!
Never in my wildest dreams did I envisage stocks being pushed back to these levels.

So where do we stand?
All three time frames a showing major momentum divergences.
All the while the market creeps higher into those February highs.
Volume has been sliding consistently since the March lows.
And that has hit new lows today.

There is no news or event that will beat this market now.
The turn will come only when the buying finally drys up!

And that is why I look at momentum.

Tomorrow;
Lets see if that all time high will hold or if I have to move to a larger alternate wave [B] top of an expanded flat.
We will soon find out.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

I have switched to the alternate count in silver today.
this involves a higher degree wave [1] top now in play.

We can track a five wave advance off the March lows that is coming to a hlt now.
And the rally has blown the top off even the bullish expectations I had!

If wave [1] is now closing out,
then we should expect a pretty severe drop in wave [2] to begin.
The initial target for wave [2] lies near the 19.00 handle now.
This level forms the highs of the previous rally into the February highs.

Tomorrow;
Silver will find an high soon in wave [1].
But I will have to wait for an initial move off the highs to begin working on wave [2].