Treasuries, Guns, & Coffee

Treasury bonds can't be forgotten this week as they bottomed this month with metals and crude, ala DSE’s warnings not to be short to WaveBOOM members over the last couple of weeks. Here is our chart and analysis of Smith & Wesson Holding SWHC.

It’s time to sell gun stocks, but buy guns and ammo (there’s never a bad time to stock up for personal safety) as the DSE’s forecast for Smith & Wesson Holdings has again been met.  We’ve narrated this one for years for WaveBOOM Members, as gun controllers have hemmed and hawed, using the DSE, rather than the popular news media to make decisions.  From the $1 zone in ’08, the forecase was for the $12 +/-2 zone to be seen.  It was last year, and again this year, and the pattern is more than mature.  The Aug/Sept decline took the shape of an Elliott impulsive, 5 wave decline (suggesting a change in trend direction), and only a 3 wave correction has come since.  The odds now favor a serious multi-month decline, if not longer, along the blue path.

Finally, it’s time to smell the coffee beans, which are about to burn, as Starbucks SBUX needs a relief correction, after wave Three, to allow some profit taking and reloading.   Notice the stochs crossing down as wave Three’s sub divisions are now completing five waves.  The high 50′s are projected in the coming months, which is a 30% move from here. This is another one we've been covering for WaveBOOM members for years.