About Author: Craig

StockTock.com discusses the ugly day of trading as this bear market shows its strength. The economic data today was horrible. The VIX was above 46. The NASDAQ made a new low. This is all part of the bottoming process, but that does not mean the market can't go down much further. I still project the S&P will be under $1000 by the time Wave 3(3) ends. Be very careful cautious in this environment. The smart money is short and showing no signs yet of covering. The trend is your friend and the trend is lower. Commodity stocks were trashed today in what looked like hedge fund liquidations. Gold miners (GDX) were mauled and voided a potential inverse head and shoulders pattern. I think gold has further to fall, but I still like the long-term chart. Check out the new StockTock Social!

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Video 1 of 2 StockTock.com discusses the recent market action and why it's important to keep an open mind in this uncertain market environment. We look at important support and resistance levels to watch for and we explain our trading plan in the days ahead. We look at the ES, SPY, XLF, XLI, and XLB. Video 2 of 2 StockTock.com discusses the challenges facing industrial and material companies. I am yet to see anything that looks like capitulation in some of the weakest stocks in this market. We discuss developments in Europe and why the euro is likely to weaken further against the dollar. We like gold over the medium term. We are dollar cost averaging into gold on weakness. I did not cover UNG in the video, but it looks like natural gas may be in rally mode. We look at XLI, XLB, POT, CAT, HON, RIG, EUR/USD, DXY, and GLD.

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StockTock.com discusses today's historic selloff. We discuss some general rules that traders should keep in mind in this dangerous market environment. Most importantly: Don't trade just to be in the action. We bring back our Elliot Wave forecast to project potential levels of the support for the S&P. Several important technology stocks are broken, but the NASDAQ is sitting on a 50% retracement level. This does not tech will necessarily bounce, but its a level to look for signs that buyers are stepping up. In the medium-term, I expect a weaker dollar and stronger gold. This remains a day traders market. I expect more downside in the days and weeks ahead, but there will be bounces along the way and the threat of gov't intervention is always on the table and must be factored into trading strategies. Tomorrow is a Jewish holiday and is usually a lighter volume day. Watch for a pause day / small bounce to follow this massive move lower.

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