Hi Load, Sorry to take so long to come back to you but I've been...

Hi Load,

Sorry to take so long to come back to you but I've been away.

In relation to my projection for the DJIA to reach 39,000, this is how I worked things out, but please be aware that I'm not too sure if it will work out as I see it.

I placed the Fib Extensions using the 2009 Lows and the 2007 Highs; one using the Close and the other using the High / Lows including wicks.

Chart - DJIA 1 - as can be seen, the Fib Exts to 161/8% and 261.8% worked a treat.

Chart - DJIA 2 - had to be dragged up as it did not fit on the page but showed the 423.6% Ext using the Closes and the High / Lows. This gives an indication of the likely price zone to be reached.

If we assume that Wave 3 cannot be the smallest of the Impulsive Waves, then we have to work Wave 5 by adding the length of Wave 3 to the top of Wave 3, giving us a figure of around 38 000.

Either way we're looking at a fairly likely Wave 5 unfolding right now and it could go somewhere between 36 000 and the 39 000 that I mentioned.

On that note, I suspect that Gold will continue to come down until we have a change of trend in Equities. There are a good few people here who follow Gold and know a heck a lot more about it than I do (which is close to nothing) but I think that Gold is sentiment driven more than anything else and whilst Equities are going up, Gold will be going down.

Cheers.

Charts: