Hi Tom. It looks to me like we could be headed for a wonderful November-January Effect this year. I saw a study in Barrons by Ned Davis that ran the analysis from 1900 to 2002, and incredibly, November-January still stands out as being the best time of the year to be fully invested. My NYSE Index analysis, which showed 50% of annual gains coming from November through January, ran only from 1968 to 1999.
Ned Davis's analysis also puts September as being the historically worst month for the stock market, just as my analysis showed.
So, with the Idiot Wave low, but perhaps up a bit, with the market likely historically to take a dip in the next 8 weeks or so, then rise strongly for 3 months, I think it could be a very good time to be ready to invest.
Ned Davis considers us to be in a 1929 US or 1989 Japan scenario, which is a horrid outlook for the next decade. He says you need to be a trading investor in times like these, buy and hold simply will not work.
Luckily for me, I have some nice business payments for work previously done that will be coming in just in time to let me get in on this year's "Effect".
fuzzymath@MathematicalAnalysis.com