SPY road map update

See previous post about SPY road map on 10/12/2009. So far so good... 

QCOM 5th wave

According to my wave count QCOM  is in the late stage of a 4th wave correction. If the count is correct, it means that there is a 5th wave up missing. I would enter longs around 39.80. First target is 45.5, second target is 49.5. QCOM is reporting on 11/3 after the bell, if by then the stock is still at current levels it is a buy into earnings. On the contrary, if QCOM rises to 45.5 into earnings, I believe odds are higher that the stock will plunge after.

CPCI / CPCE update

CPCI to CPCE ratio has been climbing with the current rally in the markets since March. Currently it is signaling an impending correction that should start any day now, note similarities in the pattern with the correction experienced in June. Assuming that the correction starts, it will probably be stopped by the lower blue trend line. The drop to get to that trend line looks larger in this case than it did in June, indicating a larger percentage drop in SPX as well. My estimation is that about a 12%-15% correction  in SPX will bring the ratio to the lower trend line.

USD

Approaching the turn around ???

SPY roadmap

UNG waves

 Looking at UNG wave count from the September bottom around 9, we can see 5 waves up to about 12. It seems like a 3 wave correction recently took UNG down to 11. Not sure if the correction is over or if we are in a X wave, I believe it is probably over. If the count is correct further upside lies ahead.