The site is a fan of Felix Zulauf of Zulauf Asset Management, and we thank him for his public statements, especially this one.

Previous prediction from Felix Zulauf of Zulauf Asset Management.."1100 on the S&P by the fourth quarter wouldn't be a surprise"..

His best trading ideas were on 20110611:

In the near term, through the summer and fall, I would short the XME [SPDR S&P Metals and Mining exchange-traded fund], the XLI [Industrial Select Sector SPDR], the XLK [Technology Select Sector SPDR] and the XLF [Financial Select Sector SPDR].

If you have to own something, go with theConsumer Staples Select Sector SPDR [XLP] and the Utilities Select Sector SPDR [XLU].

COMMENTS: Felix got the exact timing wrong but he got the trend correct. Previous posts on this blog confirm the trend is in line with expected Hurst cycles. Those that follow the Hurst cycles have been making good profits during this massive sell off.

Will the Fed announce QE3 tomorrow, or will Obama do it for him, you can bet the phone calls between Ben, Tim and Barrack are very frequent today. We dont want to see more QEs as this market needs to get off the sugar, but the Dow Jones falling 500 points in multiple days is not good press for Obama so he will do something. This is why GOLD is the best ponzi scheme in town right now.

Check out the blog post on the Gold Cycle here