Weak Fed Statement Triggers A Sharp Wave A Type Decline

The weak Fed statement today triggered a sharp Wave A type decline, see http://finance.yahoo.com/q/ta?s=%5Endx&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=.

Since NDX (NASDAQ 100, http://stockcharts.com/charts/gallery.html?%24ndx) appears to have put in a third/final Wave 5 and therefore monthly cycle high, for the cycle since early November (SPX's began in late November), versus SPX (S & P 500, http://stockcharts.com/charts/gallery.html?%24spx) having put in a second/Wave 3 cycle high, I'm going to short NDX via QID instead of shorting SPX via SDS, once a countertrend Wave B type rebound peaks, probably tomorrow. I'm also looking to short HUI (http://stockcharts.com/charts/gallery.html?%24hui) via shorting GDX, also probably tomorrow.

Reliable lead indicators Walmart (WMT, http://finance.yahoo.com/q/ta?s=wmt&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c) and Newmont Mining (NEM) have headed south in a big way today after the Fed rate decision (0.25% Fed Funds and Discount Rate cut) and accompanying statement.

For more analysis/info see the previous post at http://tradethecycles.blogspot.com/2007/12/i-might-be-going-short-spx-s-p-500-and.html.

HUI/XAU's Wave 2 Cyclical Bear Market basically began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. The primary Secular Bull Market trendlines since late 2000 are at 210-230 for HUI and at 90-95 for the XAU. Those are the targets for where the Wave 2 Cyclical Bear Market will bottom. ....... http://www.JoeFRocks.com/ .

HUI NEM XAU