Hello All, I hate to say I told ya so, but the bears are back in control.  We have begun our 5th leg lower on many markets, and one would expect at minimum to retest our lows from last week.  Europe led the way lower with bank shares tumbling as investors finally came to their senses regarding the health of the banking sector and the ability for problems to spread globally.  So much for the short selling ban, right?  It gave just enough time for the avid investor to still get in at a good price.  In the US, early morning news showed factory orders at the lowest level since Aug. 2009, and unemployment claims were up to 408k.  We’ve reached stagnation, and I will re-iterate that bonds and metals will be the only markets to head higher, especially into Jackson Hole.  The big loser of the day was Crude, which had an $8 range from yesterdays high, and we may very well see another $5-6 lower tomorrow.  If we are in a true recession, just take a look at the chart back in ’08 where we went from $145 to $30 crude; referencing the previous pullback, $60-$70 crude over the next couple months doesn’t seem too irrational.  Also, the Brent/WTI spread has widened even further which poses the risk for additional volatility (further downside).  The wild card for the day would be s&p option ex tomorrow, but I presume they’ll make the put sellers pay up and test 1100 at a minimum.  We’ll have to count 5 waves lower, leg 1 seems to have completed and we may see a 3 wave rally overnight before another 5 waves lower for the 3rd leg which will probably test the 1077 level, at which point the 4th and 5th wave may hold above last weeks low or send us to the 68% retracement level of 1016.  Keep buying gold folks, we’re going to $2000 before December and I have a good feeling that margin calls will help skew the markets tomorrow. 1)  Sell Sept Emini S&P at the market (1138), sell again at 1148 if reached, use a 1174 stop.  Exit below 1100. 2)  Sell Oct Crude at 81.80, sell again at 82.60 if reached, use a 85.10 stop.  Exit near 77.  We are rolling to Oct as Sept contract is expiring on Monday and could in part be contributing to liquidations. 3)  Sell Sept. Euro at the market (1.4295), resell at 1.4380 if reached, use a 1.4525 stop.  Exit 1.38.   To receive a trial subscription of my recommendation service, please submit a request.   http://www.expofutures.com/futures-trading-research.php  Arman Vahdatinia President, Chief Market Strategist 1-877-338-EXPO [3976] ext. 25 www.ExpoFutures.com *There is a substantial risk of loss trading futures and options.  Past performance is not necessarily indicative of future results.

Recent Comments: