Monday, June 12, 2017

Note: the reciprocal mirror image follows each chart, a money-making opportunity regardless of market
direction.

The last of our Long, Equity Swing Trades Closed-out

The count-down to Blast-off
Commodities are mostly inversely correlated with a lag
Swing Trade: Short Jr. Gold & Short Silver
Take special note of TZA below, note that the 3rd wave in this inverse ETF has initiated
with a series of bullish Diag IIs. Although this pattern ALWAYS retraces the low, it does so
to construct a solid foundation for blast off.

This pattern, the most bullish of all patterns, initiates a long upside. It is normally found
in the first wave only. When found in the 3rd Wave it is far more Bullish, since the 3rd

Page 1 of 23
 wave is often the longest & strongest. Here it confirms the dive in equities, led by
small-cap stocks, those most likely to fail from shortage of working capital when
lending dries up. While small cap stocks plunge, the inverse ETF skyrockets. That is
where we are below on the count-down to blast off.
For the larger perspective, click on the link to the SPX Monthly, showing the same
Diag II comprising the entire Bear Market since 2000.

TIMER DIGEST S&P

(Timer Digest signal are all or nothing, no partial sales accepted)
Short SPX limit 2405 May 24 as you may have noticed our limit to short the S&P was
kissed, but pulled back at the close, so Timer Digest which records only closing prices may include
today’s closing price for timing signal….Covered short & went LONG SPX 2365.72 at the close May 18
Sold SPX long limit 2402 May 24
Short SPX at the close 2374.15 Apr 24
(TIMER Digest measures only at the close, for your money, cover shorts at the opening 2354.69, and
go long at the close 2374.15)
Sold long SPX limit 2370.33 at the opening off 2360 limit Apr 24
Timer Digest uses the closing price of 2374.15, which exceeded our Short Sale limit of 2367 Apr 24
Covered short, to go Long SPX at the close Apr 17 2342.19
Sold Long to Go Short at the Close Nov 14 2164.2
Sold SPX short @ 2132
Page 2 of 23
 Nov 8 (Timer Digest uses the close 2139)
LONG at the close 2150.49 Oct 4
Covered short SPX limit 2145 Oct 4

The S&P Diag II is a fractal of the larger Diag II since 2000. Follow the link to see the larger
perspective. In the Daily SPX below you see the gap,

For the long perspective $VIX, Volatility index, click here.

UVXY Long Volatility

Full pos UVXY limit 11.65 May 24
CXL Sell ½ pos UVXY 12.45 Killed on Friday 9 June
(The high of 11.58 never reached our sell limit of 12.45, killed order to sell. The
next rally for real to a much higher high)
Sold bal UVXY 15.34 or better May 18; cost 14.44 Apr 25
Sold ½ UVXY limit 15.50 May 18; cost 14.44 Apr 25

Page 3 of 23
 Sold full pos UVXY average price 20.50 Apr 12 average cost 13.75
Full pos UVXY average cost 13.75(68.75 after reverse split) Nov 9
Sold all SVXY limit 72 cost 68.10 Nov 3
Sold all UVXY limit 17.8 or better Nov 1 cost 15.21
Sold 1/2 pos limit 16.3 Nov1
Sold 1/3 UVXY limit 18.23 off 18 limit Oct 13
Sold 2/3 UVXY limit 17.75 Oct 17 (hi 17.88)
Sold half position @ 25.20 off open Sept 13 (26.10 high of the day)
Bot ½ back pos UVXY limit 21.6 Sept 19 at the opening

SVXY, unlevered inverse Volatility, mirrors the S&P

Sold Full pos SVXY 141.5 Apr 24 cost <125 Apr 12 (13.2% gain in 12 days)
Sold half pos SVXY limit 142 Apr 24
Sell half pos SVXY limit 141 Apr 24

As you can see in the SVXY inverse volatility a likely pullback should complete a Diag >
before reaching our target 158, however, since we did not execute the SVXY order, we
should If you have not already done so, Today is optimal for buying back UXXY. We are
at point where the improbable becomes highly likely, no use attempting to nail the SPX
high to short, this is close enough…

Page 4 of 23
TIMER DIGEST Gold Daily
Full Pos Long Gold at the close 5/11 cost 1224.20
CXL Sell all Gold limit 1295 open order
as you see below in chart of Spot Gold, we missed the sell limit of $1300 by $1.2, yet the b
reversal may still kiss our adjusted limit $5 lower…otherwise we cancel
Sold Spot gold short at the Close on Tues 7 Feb 1239.5
Covered Gold short 1223 at the opening off limit 1228 May 8
(Missed the Mar 11 low missed by 0.04)
Sold long gold at the close on Friday Jan 20 1201.5 cost $1268.80 Wed, Oct 5
Covered Gold shorts at the close Wed, Oct 5 $1268.80/oz.

The larger perspective comparing Gold and stocks can be viewed here.

Page 5 of 23
JNUG Long Jr. Gold Miners
Sold all JNUG limit 20 Jun 7 (high 20.44 on Jun 7) cost 17.5 May 1
CXL Buy ½ pos JNUG limit 16.5 open order
CXL Buy ½ pos JNUG limit 17 open order

For learning: (as you see below the Alternate count is now the PRIMARY….intuiting
from the overbought RSI of the lower chart, this is most likely a false breakout,
which needs to be retraced entirely to overlap the first wave, labeled (i) to
complete a Diag >, & retrace our buy limit.

If my count is correct, JNUG will likely gap up once more at the opening. Despite
setting a limit of 20, lower than the close, (20.4), this greatly increases the
probability of an execution, so as not to miss the sale… all orders entered before
the opening receive the SAME opening execution price, as sales and buys are

Page 6 of 23
 matched …the buyback limit is preset to scale-in, enter the buy upon execution of
the sale)

(The price action makes a drop below16 highly unlikely)

enter now, although we will not sell the second half, we still
Attempt to Buy back & lower average price and accelerate the profit
Sold ½ JNUG limit 20.9 off open order May 17; cost 17.5 Apr 27
Bot Full pos JNUG average cost 4.375 Apr 27 (reverse split 1:4 May 1 cost = 17.5)
Sold ½ pos JDST limit 20.5 (hi 21.44) Apr 27 cost 17.83 Jan 10 & Apr 12
Bot ½ pos JNUG limit 4.30 (low 4.21) Apr 27
Bot ½ pos JNUG limit 4.45 (low 4.21) Apr 27
Sold Full pos JNUG 8.18 at the opening off limits 7.5 & 8 Jan 9 cost 6.61
Sold 1/3 JNUG 5.42 off limit 5.35 Dec 29
Bot Supp ½ pos JNUG limit 6.45 Nov 25
Bot ½ pos JNUG 7.0 limit Nov 17

Page 7 of 23
JDST Short Jr. Gold Miners (Short Jr Gold Swing Trade)
Buy ½ pos JDST limit 67
Buy ½ pos JDST limit 65 (aggressive limit may not execute)
Upon execution enter to sell all JDST limit 77
Sold ½ pos JDST limit 20.5 (15% gain)Apr 26
Bot Supp. 1/2 pos limit 12.5 (12.48 low Apr 12)
Sold ½ JDST limit 17.5 off open order Apr 24
Sold all JDST limit 31cost 23 Nov 10

Just as Volatility traces the inverse S&P, each asset-class below is trailed by its
reciprocal…Inverse Gold above is the inverse mirror image as long gold Jr. Miners below

Although Gold is a time-tested easily transportable form of concentrated wealth, Silver is

more attractive for the upside potential as well as for lesser concentration which allows
you to buy essential food and shelter in a crisis.
In the Big Picture Charts, Gold’s next move is a Bear Market Rally, while a similar B-wave
in Silver is preceded by a Diag II to indicate a far more vigorous Bull Market.

Short Silver - DSLV

Page 8 of 23
 For Learning; expertise is found in forecasting reversals, not in projecting
a linear continuation of the trend, any fool can do that (Look at forecast
reversals. There, focus is the execution price from a preset limit, versus the low of
the day (just 0.12 lower on June 7) this means that we forecast the reversal
precisely, to execute near the low off an open order, not while glaring at the
screen…notice the sell limit to unwind the trade is already in place. The reason for
a half position vs. a full one, is to minimize risk. This is a swing trade against the
larger trend)

½ pos DSLV cost 22.5 June 7 (low 22.38)

Sell all DSLV limit 26.5 open order

Sold ½ pos DSLV 25.10 at the opening off limit 24.48 May 1
average cost 20.81 March 29 = 17.6% gain in 2 months x 6 annualized = 100%+
Sold ½ pos DSLV 24.68 @opening off limit 24.48 Apr 28
average cost 20.81 March 29
Bot back ½ pos DSLV limit 20.65 (low 20.62) Mar 30
Sold ALL pos DSLV limit 25 Mar 9 cost 23.11 Jan 22 & Feb 27
Sold ½ pos DSLV limit 24.5 at the opening Mar 8
Bot ½ pos DSLV 20.78 at the opening Feb 27

Big Picture Monthly Silver (link)

Page 9 of 23
 Daily Silver – USLV
Sold ½ pos USLV limit 13.8 (15.8% gain) June 1 cost 11.91 May 3 & 4
Sold ½ pos USLV 13.8 off limit 13.4 June 2 cost 11.91 May 3 & 4
(likely Diag > will allow us to buy back cheaper to reduce average cost & accelerate the profit)
Bot 1/2 pos USLV cost 12.33 at the opening off limit 12.7 May 3
Bot ½ pos USLV limit 11.5 (low 11.28) May 4

The bounce in Inverse Silver (short), DSLV, above is inverted as a drop in Long Silver,
USLV (U for up) below… in Silver as in GOLD the intermediate term move is down, only
when it reverses, will Silver be opportunistically bought at the low.
-

Page 10 of 23
DGAZ Short Natural Gas 2-hr
Sold ½ pos DGAZ 20.4 at the opening off limit 19.9 May 17 cost 18.81 May 10
Sold ½ pos DGAZ 20.28 at the opening off limit 20 May 18 cost 18.81 May 10
Bot ½ pos DGAZ cost 18.91 off limit 19.10 May 10
Bot ½ pos DGAZ cost 18.71 at the opening off limit 19 May 11
Sold ½ (of total ) pos DGAZ limit 21 May 8 cost 18.46
Sold ½ (of total ) pos DGAZ limit 21.95 (hi 21.99) May 8 cost 18.46
1.0 pos DGAZ average cost 18.46 Apr 5
(this is a swing trade, next move is most likely a pullback to the area of 19, although above our
cost, selling half at 21 and likely higher at the opening allows us to reduce the average cost to
accelerate and optimize the profit)

Although the Big Picture Natural Gas is extremely bullish, a modest pull-back is required
in the normal unfolding of any Elliott Progression. The only way to profit from such a
pullback is via the inverse ETF. As UGAZ is reversing to the downside, DGAZ above,
aggregates and compounds profit.

Page 11 of 23
UGAZ Daily Natural Gas
Full Pos UGAZ average cost 14.98 May 31 & Jun 1
Buy sup half pos UGAZ limit 13.5 open order (aggressive limit circled in blue, top
of the chart…bottom fishing)
Bot ½ pos UGAZ cost 15.96 off limit 16.45 May 31
Bot ½ pos UGAZ cost 14 Jun 1 (Low 13.96)

Long Crude Oil UWT

Page 12 of 23
Full Pos UWT average cost 15.34 Jun 1 & 2
½ pos UWT cost 15.7 Jun 1
Bot ½ pos UWT cost 14.98 at the opening off limit 15.0 June 2
Sold 1/2 UWT limit 17.0 May 17
Sold 1/2 UWT limit 17.5 May 18 ( high 17.55) cost 16.86 May 3
Sold 1/3 pos UWT cost 17.34 at the opening off limit 17 May 15
+ Supp ½ pos UWT cost 15.65 May 3
(all orders entered before the opening are matched to execute at the same price. A limit four cents
above the close enhances our probability of execution without any cost)
Sold ½ UWT limit 19.49 Mar 31 average cost 17.75 Mar 10 & Mar 22
Sold ½ UWT @ 18.78 off an 18.5 limit at the opening Mar 30

As signposted by the Diag II, Crude Oil is embarking on a long Bull Market. Before the
upside continues, a bounce to 25 most likely, look closely you see a gap in early March.
The oversold, 2-hour chart of DWT below will most likely bounce in a head-fake before
dropping to complete wave iv of the Diag II.

Page 13 of 23
 Inverse Crude Oil DWT
sold all DWT @ 30.12 off limit 29.5 at the opening May 31 cost 27 May 19
Sold half of total DWT limit 29.5 off open order Apr 24 average cost 25.64
Sold half of total DWT limit 29.0 open order Apr 24 average cost 25.64
1.5 pos DWT average cost 25.64 Apr 4 & 13
Bot supp ½ pos DWT limit 23.25 Apr 13
Sold full pos DWT @25.05 Mar 8 cost 21.42 Feb 23 (gain of 16.9 % in 13 days)
Sold 1/2 (additional 1/3) pos ERY 9.89 at the opening Jan 23 off limit 9.8
Sold 1/3 pos ERY limit 9.5; Jan 9

EDZ Inverse Emerging Markets

1.5 pos pos EDZ average cost 21.18 Jan 13 & Feb 13
bot a supp ½ pos EDZ cost 16.29 Apr 25 for new clients with a full position

Page 14 of 23
Daily Emerging Markets below
for the Big picture, monthly Emerging Markets perspective click here

Inverse China YANG

1.50 pos YANG average cost 12.73 May 16 & 25 (10.608 + 1.753 =12.36)
Page 15 of 23
 Bot 0.25 pos YANG off open cost 10.52 at the opening may 25
0.75 pos YANG average cost 12.73 13.8 Jan 13, Feb 13 + May 16 (8.28 + 4.44)
Bot ½ pos YANG limit 11.10 low 11.07 May 16
Sold ½ of total YANG limit 13 Apr 19 high 13.03
Bot supp ½ pos YANG limit 12.55 Feb 13
Sold all YANG limit 15.8 Dec 16 off open average cost 14.36

Below is the Daily China chart, the annotations indicate a drop into wave (d) before a
reversal into wave (e) to complete wave 4. For the larger perspective Monthly Shanghai
Chart click here.

Page 16 of 23
FAZ Inverse Financials
Buy ½ pos FAZ limit 17.65
Buy ½ pos FAZ limit 17.10
Sold all FAZ 20.35 at the opening off limit 20 May 18
(closed 20.6 in false breakout, still must retrace 17.8 earliest Diag II before long climb)
Sold ½ of total pos FAZ limit 19 (high 19.01) May 8
(a partial sale frees-up cash to buy back FAZ near the low of 17.6 to reduce average cost, although FAZ
has begun a long Bullish move, the min pullback to complete the Diag II is 17.8, more likely is 17.6 low
and …the previous scale-out limit of 28.8 was never reached)
Bot Supp ½ pos limit 24.5 Nov 22

For Learning: Notice the lowest Diag II, and any gaps below it are retraced by the larger,
Diag II, to effectively stop-out the weak & clueless. In the absence of sellers the upside
reversal takes off like a rocket - there’s no looking back. In the absence of buyers in the
Reciprocal long FAS, the drop from the Diag II is free-fall & CRASH.

Page 17 of 23
 Like the Volatility Index, the inverse Financial ETF, FAZ, is beginning a long, Bull move
signaled by the most bullish of all price patterns, the Diag II. Click here for the Big
Picture Financials.

FAS LONG Financials a bounce analogous to & concurrent with the SPX
Sell all FAS limit 47 (close 47.51)
This trade closes out the last of our long, swing trading positions
(all limit orders above the opening price, execute at the SAME price)
Bot ½ pos FAS cost 42.5 Jun 1
CXL Buy ½ pos FAS limit 43.5 open order (low 43.15 Jun 1)

Page 18 of 23
 Inverse Small-Cap Stocks TZA
Full pos TZA average cost 16.55 Jun 2 & 8
Bot ½ pos TZA cost 16.6 June 8 (low 16.25)

Sold all TZA 18.95 at the opening off limit 18.8 May 18 cost 19.96
Sold ½ TZA limit 18 May 4 (high 18.02)
Bot sup ½ pos TZA cost 16.89 off limit 17.5 Apr 25
Sold ½ pos TZA limit 19.3 Apr 18 (high 19.32)
Page 19 of 23
 Bot back ½ pos TZA 18.36 at the opening off limit 18.4 Apr 19
Sold ½ pos (1/3 of total limit 19.3) Mar 28 open order
Bot sup half pos TZA limit 21.35 Nov 23 (only for those with cost above 24)

Small-Cap Stocks TNA

Inverse Small-Cap Stocks also exhibit the most bullish of patterns, to reflect small companies
are those most likely to fail in a cash crunch. When companies fail, the price often drops to zero,
while shorts and inverse ETFs go through the roof. Inversely, in a Bearish decline, the absence
of buyers likewise becomes self-perpetuating. This is currently the case in all long, stock
indices.

Below the Euro, ULE, is also beginning a long, vigorous upside. Click on the underscored
link for the Big Picture Euro. We sold at 14.7 and looking to buy back at a limit of 13.7 in a

Page 20 of 23
swing trade. While we waited ULE went too far in a false breakout, which must be entirely
retraced. While we wait for our limit in ULE, we will buy a half position in EUO for the
swing trade.

ULE long Euro; EUO inverse Euro

1.5 pos EUO average cost 24.876 May 4 & May 17
Bot ½ sup pos EUO cost 24.37 at opening off limit 24.4 May 17
Bot ½ pos EUO limit 25.0 (low 24.93) May 4

Three oversold RSI instances in the lower chart usually mark the trough, this too
was hacked off upon saving.

As you see in EUO above, we are in the game with a partial position, allowing us to set a far more
aggressive the limit of 25 for second half. It’s best to be detached about the outcome in any
negotiation, as in the market. If you must have something, you will likely overpay. Whereas, if you
make your final offer, the salesman will often agree to your price, but only if you are prepared to
walk away. From his perspective, better a small profit than none at all. If we don’t get our price,
we either walk away or adjust the limit lower.

Page 21 of 23
It’s yet not clear which count is correct, ULE or EUO, regardless in both the direction
of EUO is up, and ULE down.

For the Big Picture Global perspective (Do not pay attention to the false warning intended to
dissuade you from viewing this critical Global Perspective. The link in question is a pdf file stored
on my Microsoft Enterprise Cloud)

Page 22 of 23
Eduardo Mirahyes

Page 23 of 23