Bear Sighting Was Premature

When a correction fails to reach its ‘D’ target as could occur here, it implies the dominant trend, a 16-year-old bull market, will continue. MSFT could still relapse to d=431.89, but we’ll give bulls the benefit of the doubt for now with a rally projection to at least 526.24. That’s the ‘d’ target of a pattern on the weekly chart begun on 9/5/25 from 492.37, and it will become an odds-on bet to be achieved when the stock pops though 495.57, a midpoint resistance that comes from the same pattern.

This is the first chart I’ve drawn that projects a gold price above $5000/oz. The pattern is probably too obvious to work precisely, but that won’t negate its ability to keep us confidently on the right side of the trend. A theoretical buy signal has already been signaled with the thrusts through the green line (x=4234.40). However, we can’t know how likely the 5126.10 target is to be achieved until we’ve seen buyers interacts with the midpoint Hidden Pivot resistance at 4529.79. For now, we can use it as a minimum upside projection. As always, a decisive move through p, and particularly a close above it, would shorten the odds of a continuation to D.

A minor rally target posted in the chat room on Wednesday caught Friday’s spike high within 0.04%, but there’s more rally room to at least 94,155 once Bitcoin completes its pullback. The whipsaw reversal to the downside shaved nearly $3,000 from the peak price in under three hours, underscoring the nasty volatility that occurs in this vehicle between swing highs and lows that have been precisely predictable. For those who trade BTC over the weekend, look for a reversal from 89,980 to leverage.  Be aware, however, that a decisive breach of this midpoint Hidden Pivot support (15m, a= 92,804 on 11/28) could send Bitcoin down to at least 88,688 in search of traction. _______ UPDATE (Nov 30, 7:30 p.m.): Bitcoin’s slide through the ‘hidden’ supports given above implies more slippage to 86,884. If that Hidden Pivot gives way, the next support would be at 83,746, and thence 80,607. _______ UPDATE (Dec 1, 8:52 p.m.):  The low of today’s plunge came within 54 points, or six-hundredths of one percent, of the 83,746 target given above. The lowest number in the sequence, 80,607, remains valid as a minimum downside objective if BTC relapses, and a run-up to 90,023 would trigger a theoretical ‘mechanical’ short, stop 93,163.

My hardcore deflationist point of view has saddled me with a bullish bias whenever I ponder a T-bond chart. Although this allowed me to catch the October 2023 bottom just off the low, it also caused me to see the nearly two-year dirge that has occurred since as base-building for a long bull market that has yet to materialize. I don’t doubt that it’s coming, presumably in conjunction with the next recession. But TLT’s chart suggests it could take many months before it rises and, inversely, yields begin to fall. In the meantime, look for it to scuddle sideways, with a moderate bias to the downside that would correspond to merely somewhat higher long-term rates.  Altering our expectations in this way can help diminish the distraction of believing Trump can do something about it — i.e., about rates determined by markets, and about high levels of debt that are crushing America’s middle class. He can’t, and his expansionist, credit-driven economic policies will only exacerbate the bearish trend in bonds. Suppose the small rise in their price over the last two years has completely discounted the global appeal of Trump’s bold leadership and the additional demand this has created for U.S. Treasury paper. In that case, it’s hard to imagine a bullish surge in T-bonds when the President’s inflationary policies produce the opposite of instant economic miracles: stagflation.