AI
Tuesday, March 11, 2003 3:04:28 PM
Important Notice:
For those of you who give the Idiot Wave some attention each week and for those of you who feel they might have benefitted from watching it in the past, this week's movement is of interest. It is very rare that we see the Risk Level drop as quickly as it has in the last few weeks. Exceptional is not only the change, but the rate of change.
So, if you have come to believe that the best time to use your cash for investing is during times when the market is under very heavy stress, then you will be in agreement with this week's IW reading. Not only has the Raw data dropped the IW to Low Risk, but also the Smoothed data is now indicating the same.
All four components of the IW dropped nicely this week. Two remain in their own Bullish camps, one is borderline between Neutral and Bullish while one remains Bearish. The Bearish one is the Divergence component. This is understandable as there's plenty of divergent thinking in the world right now - just ask G.W. Bush and S. Hussein; or for that matter T. Blair and J. Chirac.
In any case, if there's a bright side to the world situation, it might just be that we've been given yet another opportunity for Low Risk investing. Remember that this doesn't mean No Risk, but that the prices of equities now reflects a view of rather serious worry.
Best regards, Tom
For those of you who give the Idiot Wave some attention each week and for those of you who feel they might have benefitted from watching it in the past, this week's movement is of interest. It is very rare that we see the Risk Level drop as quickly as it has in the last few weeks. Exceptional is not only the change, but the rate of change.
So, if you have come to believe that the best time to use your cash for investing is during times when the market is under very heavy stress, then you will be in agreement with this week's IW reading. Not only has the Raw data dropped the IW to Low Risk, but also the Smoothed data is now indicating the same.
All four components of the IW dropped nicely this week. Two remain in their own Bullish camps, one is borderline between Neutral and Bullish while one remains Bearish. The Bearish one is the Divergence component. This is understandable as there's plenty of divergent thinking in the world right now - just ask G.W. Bush and S. Hussein; or for that matter T. Blair and J. Chirac.
In any case, if there's a bright side to the world situation, it might just be that we've been given yet another opportunity for Low Risk investing. Remember that this doesn't mean No Risk, but that the prices of equities now reflects a view of rather serious worry.
Best regards, Tom
Port Washington, WI 53074
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