What is the market doing now ?
Very simple, trapping more bears or bulls, according to my stock price development theory.
Last Thursday, I have mentioned 1960 and 1940 are the two targets for bears if the bulls failed to break out 2020 in the next few days. here is the previous post.
Since bulls already reached the target 2005 last Friday. According to the symmetry principle, bears have a good chance to hit the 1960 target soon.
The whole pattern of today is a continuous down wave from 2010 last Friday. The target is to fill the gap up of last Friday. So far, the gap has not been filled, which is pretty good for the bulls.
I will expect, sometime this afternoon, a strong UP wave. If not that STRONG, then hitting 1960 and fill the gap will be real and will happen pretty soon.
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thanks. the gap will be filled.
ReplyDelete1960 is coming soon
ReplyDeleteCNBC squak box had several of the Hedge Fund big boys on this morning to address the US economy. The players were Leon Cooperman, of Omega Advisors; Michael Steinhardt, of Wisdom Tree Investments; and David Gerstenhaber, of Argonaut Capital Management.
ReplyDeleteIt was a very reasoned discussion. A few of the points they made as they talked were:
- We will be in a contained depression for quite a while
- The economy, going forward is extreemly fragile and therefore predictions have no validity at present.
- No one is long term bullish.
- the current recovery is just a correction driven by too fast a drop in production compared to sales (or inventory if you prefer). So it is a balancing act in a falling economy.
- There is somewhere between 25 and 33% chance that the market will revisit the recent lows for the markets.
- inflation and the future of the dollar is a real problem
All in all they did not present a rosy outlook.