"Remember this is just One Man's Opinion"
Monday, May 24, 2010
The Markets have Showed their Hand
As per my previous post it looks like the market has taken the alternate count. However if we break the May 6th lows again, which may happen overnight, we will visit the 1000 to 1020 area in a swift and decisive manner. From that level as all round number tend to act as significant support or resistance. When price approaches we should see some kind of bounce. It is very much possible the travel to this level will be very complex and many head fakes on the way there. As I look at the real time chart as I write we are at midst of a break of the low from last Thursday. If this double bottom holds we should see a rally up to the 1110 to 1120 area. The market showed its predictive hand and it is not going to be for the faint of heart investing in equity, commodity and currency over the next 2 to 3 years. There will be great trading opportunities for the trader type mind however for the majority of the population cash will be king as we muddle through this most difficult period. There is nothing wrong in being in cash but the key to cash is that you have too be fearless when the opportunity presents itself. I believe we will be witnessing the ultimate bottom within the next 2 to 6 years, which will set the stage for another great bull market that should begin between 2018 and 2020 and last for 10 to 12 years.