We waited until today to produce our bi-weekly report so that we could have a clean look at the important month-end charts. The price action reversal in the monthly charts from the downside that occurred during the second half of 2011 is now showing signs of reversing back to the upside. During the previous cyclical bear markets of this decade, no signs of a reversal occurred, until the cyclical bear ran its course with the major averages at significantly lower levels. We do not speculate as to why this reversal occurred, but we understand that global central bank intervention may have helped the financial markets get back on their feet for now.
With the longer term charts attempting to join in the same trending direction of the daily and weekly charts, it suggests that one should not fight the tape. If this new uptrend out of the 2011 consolidation period continues, it could be one of significant magnitude. It is at this stage of a trend (the beginning) that it is most doubted. There remain concerns about Europe, along with low volume in the markets. These are reasons that many state as why they should be risk adverse and remain on the sidelines. But the current price suggests otherwise. We are seeing important trend development in many different areas of the financial markets.
(Download Report Here)
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Market Review and Commentary, Bi-Weekly Report
We waited until today to produce our bi-weekly report so that we could have a clean look at the important month-end charts. The price action reversal in the monthly charts from the downside that occurred during the second half of 2011 is now showing signs of reversing back to the upside. During the previous cyclical bear markets of this decade, no signs of a reversal occurred, until the cyclical bear ran its course with the major averages at significantly lower levels. We do not speculate as to why this reversal occurred, but we understand that global central bank intervention may have helped the financial markets get back on their feet for now.
With the longer term charts attempting to join in the same trending direction of the daily and weekly charts, it suggests that one should not fight the tape. If this new uptrend out of the 2011 consolidation period continues, it could be one of significant magnitude. It is at this stage of a trend (the beginning) that it is most doubted. There remain concerns about Europe, along with low volume in the markets. These are reasons that many state as why they should be risk adverse and remain on the sidelines. But the current price suggests otherwise. We are seeing important trend development in many different areas of the financial markets.
(Download Report Here)
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This entry was posted in Market Commentary. Bookmark the permalink.