This Is It

My system moved lower to +775 on Friday and moved higher to +825 putting the buy signal on with a confirmation needed tomorrow. This moment in time is what we have been waiting for. It is the best risk-reward set-up you are going to see for the rest of this year. I can't emphasize enough how important this week is now after today's rally with the $HGX holding that 81.o5 low. Although I previously expected the rally to occur in the first three weeks of June, that is out the window as the rally is now or never. If it follows through it should be at least a 5-7 day rally and should break 100 on the $HGX which is more than 15% upside in a very short time. If this turns out to be the explosive rally I think it will be, June and July calls are a good way to make your year here while on the equity side I would place buy stops above daily highs and definitely above last week's high and ride those positions into the jobs report next week . I invested half of my remaining bullish allocation today and the other half will go in tomorrow. Tomorrow, if we get a 75% retracement of today's move, it will call this whole bullish scenario into question and I would start leaning the other way heavily with a break of 81 likely headed to 70-73 very quickly. Bottomline, there is a big move coming and you have to go into tomorrow with a bullish disposition and then let the market tell you where it's going by the end of the day. The catalyst for housing will be the two big numbers over the next two days with Existing Home Sales coming tomorrow and New Home Sales on Thursday. The reaction to these numbers will dictate whether the extremely bullish scenario or the extremely bearish scenario happen. This is one of those rare moments when you have to keep your eyes completely glued to the market because a move is occurring and we are at the beginning of it which is where the risk is the least and the potential rewards are the greatest.