Mike
Active member
http://moneycentral.msn.com/content/Stratlabs/Round13/P151521.asp
A really ugly read... basically the author notes a lot of bear markets hitting roughly every four years. He also notes that anytime you see a day following closely behind a new high with 90% downward action, that typically marks the start of a long slide.
His forecast? 10-25% drop (S&P is down roughly 5% from its latest peak at this point) before the bottom is formed and a rally can begin (which he expects to happen sometime very late this year).
Given that info, I think I'm going to slow my incremental buying down and wait 'til I sense some sort of capitulation out there. Maybe I can buy a bunch of shares when the indices hit/penetrate their 200 day MA's.
A really ugly read... basically the author notes a lot of bear markets hitting roughly every four years. He also notes that anytime you see a day following closely behind a new high with 90% downward action, that typically marks the start of a long slide.
His forecast? 10-25% drop (S&P is down roughly 5% from its latest peak at this point) before the bottom is formed and a rally can begin (which he expects to happen sometime very late this year).
Given that info, I think I'm going to slow my incremental buying down and wait 'til I sense some sort of capitulation out there. Maybe I can buy a bunch of shares when the indices hit/penetrate their 200 day MA's.
