Hi Everybody
Looks like we are still in the DP zone, so the S&P has not finished making its "decision" on whether it is going to reverse or push higher....
But this reminds me a lot of late 2002, when the markets were rallying off the lows. It is all too easy to get a bit too excited and want to pick the next high, because you don’t want to miss out on the next big fall.
BUT, and this is a big but, because the fall has recently happened the "probabilities" are that a recovery will now unfold rather than another big fall.
Precter and many other big EW Gurus fell into this same trap last time and were continually calling for a top as the S&P rallied for the next few years.
So yes, trade your own system, but just be aware that a major low may have been made in March and as such the markets may now be in a new major up trend...............
Steve
Looks like we are still in the DP zone, so the S&P has not finished making its "decision" on whether it is going to reverse or push higher....
But this reminds me a lot of late 2002, when the markets were rallying off the lows. It is all too easy to get a bit too excited and want to pick the next high, because you don’t want to miss out on the next big fall.
BUT, and this is a big but, because the fall has recently happened the "probabilities" are that a recovery will now unfold rather than another big fall.
Precter and many other big EW Gurus fell into this same trap last time and were continually calling for a top as the S&P rallied for the next few years.
So yes, trade your own system, but just be aware that a major low may have been made in March and as such the markets may now be in a new major up trend...............
Steve
Posts
