New Rally Highs Imminent

The positive earnings news from AMZN and MSFT are outweighing the negative news from BRCM. The Qs have exceeded the limit for a second wave retracement in the pre-market, but even though this muddies up the subdivisions of the elliott wave count somewhat, it doesn't change the big picture unless and until the SP500 exceeds 1121.59.

In another development gold appears to be heading into a 5th wave in its move off of the August 17 low. It seems that stocks and gold will be topping at about the same time. The question arises as to whether profits should be taken in gold. This depends on each trader's goals, plan and situation. I personally believe that gold will be going higher after a pullback, so I am willing to remain long at this point. The risk in gold is still to the upside and I don't want to be on the sidelines and wake up to a 50 point surge.

I will continue to remain long 1/2 positions in the QID, TWM and SSG as long as markets remain below critical levels.