Four Pillars Finance Newsletter

Issue #112 (8 August 2011)Hello everybody.Interesting times again in the markets. Most of our cycles remain on track.Let's take a look on the prospects for the coming months.Here is the FPF prediction chart for the Nasdaq in 2011.

(Predictive chart made with FPF 1.1 software, available athttp://www.fourpillars.net/finance/fpf.php

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Nasdaq

Current level: 2532

The Nasdaq has held up till July, but seems to be falling off a cliff now.Chinese cycles pointed to lows in March and in August/September for this year, and here we are.Now that the two year uptrend is broken, we would look for 2100 – 2300 as a probable bottom area.For October/November our cycles suggest a rebound, but by December/January we may be testing the lows again, as thatare the next upcoming Metal months.So, it's too early to jump in. Wait till September or even December to start looking for bargains.Don't try to catch a falling knife.Here is our updated prediction chart for Nasdaq

Gold

Current level for XAU index: 196

Gold stocks continue to go largely sideways, even though the price of gold is making new highs again.October/November is the next Earth months bottom period for Gold stocks.We may get a chance to buy around 150-170 on the XAU.So just be patient.Here is the current chart for XAU: