Warning!!!!Big rally coming for mkts imo!
I rechecked my calculations and the rally I have been expecting is going to be larger than many can imagine right now. Due to recent price action, my targets need to be revised.
I'll explain later in detail but for now, back in mid-July I was expecting FAZ to rise to $17.15. At the time it stopped at $16.72. I was surprised at the time as I was expecting a little more. Well we finally just saw that move now! In other words things are happening slower than I expected earlier in the summer.
What this means is that my target for FAZ drops from $11.75 to a new low below $10.78. For FAS my target rises from $26 to $30. For the S&P my target rises from 1145 to 1160.
The banks in particular according to my model will rally sharper than the markets for many weeks.
The economics are deteriorating or course, but the market is clinging on to upward momentum from many decades. People are reluctant to realize what is coming (depression), and therefore mkts can rally sharply (and illogically) in the face of this deteriorating economy. While the big picture for FAZ looks good, it doesn't make sense to hold for fresh lows before a turn around.
$rifin won't make it back to April highs, but remember FAZ has decayed with all the choppy trading this summer. This is why FAZ can hit new lows with $rifin making a lower high from April.
I like FAS, or can also just sit and wait in cash.
SC