Kyocera Corp (KYO)

[Alex G]

Interesting comments from Aegean Capital, I tend to agree with...

"Today we can point out a very interesting situation that is currently unfolding. Notice that the very same pattern in May resulted in a minor rally which was followed by a bigger decline, and in July it resulted in a large decline, which was followed by an equally large advance. There are two points that can be made a) the markets at this point can go either way, and b) which ever way they go first, they will reverse and the ensuing move should be just as big, or bigger but in the opposite direction!

The first point is supported by the fact that the McClellan Oscillators and the Quantifiers are showing bullish divergences, but the BSEs and the Thrust Oscillators are topping out which is bearish. Obviously there are plenty of cross-currents that are pulling the markets both ways, as illustrated both by bearish and bullish readings in the indicators. The second point supports our belief that investors should ignore how the current pattern will be resolved, because the bigger and more important move will come after the resolution, and it will be on the opposite direction. If the current pattern results in a rally, it should be followed by a bigger decline, and if it results in a decline, it should be followed by an even bigger advance. It is important for investors to understand that the markets are in a transitionary period, and what happens the next 5-10 trading is not all that significant, what follows will be of much more significance. Given that the markets have been falling or seven months, and given some important divergences that have started to appear in some of our intermediate term indicators, we believe that the odds do favor a resolution on the downside, followed by a powerful rally. However, given the level of risk present in the market, we would caution investors against making early major bets on how the current situation will be resolved. Being patient at this point will serve investors' interests well..