Many thanks. Can you please clarify which of my thoughts are correct from those below.
1. Are you implying that once we hit Monday's retest low we go up - is that NOT III-1-4?
2. Is Monday's retest the real low in this 5 week cycle? or you are expecting a lower low before Nov 26.
3. Or is the correction a zig-zag or A-B-C down...so we retest 1196 go up to 1220 or so, and then again come back to 1187 by Nov 26 or so to complete III-1-4 (5 week cycle low).
Regardless, you think once we get out this correction the III-1-5 will be higher than 1227 to 1250-1313 area.
the bull is all about dollar dilution, imho, not that multinationals and companies that work with the govs aren't doing well but the money going into the stock market is mostly coming from POMO, and the Fed's liquidity is holding up a massive bubble that is underwater, in hopes the dollar dilution can win out. hge
John Embry: "I think the equity markets are reflecting the enormous amount of liquidity being injected into the market, particularly in the U.S. There's no question that POMO (permanent open market operations) are going on continuously—to the extent that Goldman Sachs has identified the days they're happening and recommending people buy equities those days—and they're having an outsized impact on the market. This does not reflect the underlying economics whatsoever.
We're very concerned about what might happen to equities because we continue to believe our view on the economy is playing out and that the U.S. economy has no real forward thrust. I don't think equities are all that interesting now, particularly at the level to which they've been elevated due to these various market interventions.
The authorities wanted to make things look better going into the November elections. Maybe now, there will be less pressure to inflate things to such an extent and they will focus more on reality than elections. Now that we're through the elections, it's almost like the roadrunner off the cliff. The feet are going fast, but look out below." http://www.marketoracle.co.uk/Article24196.html
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