The Master Cycle (MC) is a TIME Cycle and does not predict Price Magnitude and was looking for an 10/19 heavy down day, which we got and a rebound into an 10/20 High, which saw a 1 hour spillover into 10/21 1st hour HOD.
In Terms of TIME, the MC remains mainly on track, but is not giving the expected Price Magnitudes. For this reason the MC suggests any decline should be limited and is not expecting any future Mini Crashes, but just a limited decline.
The markets are being influenced by the new money mantra “QE II” and are awaiting the Fed’s decision on QE II on 11/2-3 (ie “print more money” and “print your way out of a recession”) and the all important midterm elections on 11/2.
The good news here is once the MC bottoms, we should see a stronger rally to new recovery Highs.
The good news here is once the MC bottoms, we should see a stronger rally to new recovery Highs.
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