The other area of interest remains precious metals, which now has excellent Gann symmetry at the low in both the gold chart and XAU. I know Friday was rough, but the charts have been stubbornly persistent the past couple of weeks, which is bullish. We’ll remain bullish despite Friday, sticking with our higher probability Gann readings. If the stock market continues to sell, we might be developing one of those sequences where we have an inverse relationship with equities and precious metals. It’s happened before; it can happen again.
Finally, we’ve seen acceleration in the VIX. This is another area of frustration. As you know, I’ve joked recently the VIX doesn’t seem to matter anymore either. Just when emotion hits the extreme point is when the reaction finally kicks in. I don’t use myself as a contrary indicator because I don’t turn bearish/bullish at extremes. I just have an internal meter that somehow interprets what these extreme conditions means. In the last couple of weeks, we hit it. For the week, I suspect volatility with the most interesting sequence on Friday as we hit the jobs number again. It should get really interesting. If we were to sell off the entire week, which could end up being the low.