Mini DJIA 30 Intraday Bull Rally Update

The counter rally has now already played out and is now resuming its decline. There is always the potential for this market to turn, but this correction should still go deeper before it is ready to do so.  Not until, this bullish counter rally is completely retraced will I be satisfied that the bigger bearish phase is in progress.  Hopefully we will know by next week sometime as a wave 3 decline can be pretty devastating.

The entire January bullish phase has been wiped out already devastating  those investors that thought they were “safe” investing at an extreme high.  What very few investors understand is that “Bull” markets, are the breeding grounds for bear markets and they only money flowing into this market is the dumb money.  Not a single contrarian, I respect would buy into this peak as they are too busy setting up their short positions. At the extremes, fundamentals will always tell you the wrong things and this time it’s no different.

Close to a 9 year bull market, many wave analysts keep raising their degree levels as they falsely think that the bigger the bull market the higher the degree levels should become. It works exactly the opposite way as the higher the market goes, it’s the smaller degree levels that are extending, which you would never see in the weekly and monthly charts.

From 1929 to 1932 was a SC degree correction so our present Cycle degree correction should not last much longer, There is no 600 year bear market coming so you can put those bearish thoughts out of your mind.  Sure, chances are very high that a recession is also going to arrive, and when the mass media recognize that fact, then the recession will be over, and a huge new bullish phase will develop.

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