I was too busy to update the blog. I have been updating my client on email and busy with work and research on the market that i have really no time for this. But i am back.
Bear is in the market!!!
So let me start with Operation twist that happen in 1960 and you see a hugh sell off, then it rally and then a real major sell off. So this might happen to what we are experiencing now. See the DJI chart on yahoo,google or whatever.
My 5 week advance indicator say that we are at the peak and there will be sell off thru now till Oct.
Seasonal trend
You notice that the drop through out the last 25 years is usually in Sept, rebound and then drop into Oct before a rally.
10 year cycle
Usually is a down year for 2012 then the massive run up is the years ending with 5. So the next one will be 2015.
We are in down trend now. But I guess there will be a massive rally around the corner. After this massive rally please exist all your position on long and prepare for short. 2012 will not be a good one ( base on analysis). 2015 will be another rally like what we experience in 2005 thru 2007.
The other thing to look out for is that everything is flush down especially crude oil, this will make the cost of doing biz cheaper. With the strengthen of the USD and cheaper commodities, this is going to give the world a simulates package. However we are in a downtrend now and I still see a major rally to come in Oct. Any call to buy will be a short one. Of course higher risk.
I have call to buy today on FX, stocks and indices
Here is the SnP500. Perhaps a triangle is forming. That could be a false breakout to the downside. Usually this happen you will see rally.
STI have a bullish flag form.
Nothing is 100%
