I am just surprised the article does not mention the "Kondratieff Winter" to sound even more esoteric and scary. Everything is possible. I am quite sure some perma bulls could come up with some very articulated projection of Dow 36,000 or 100,000 using Fibonacci's.....extension (1.618) !!!! Personally, I am an agnostic, and pretty much trade with the trend. And now we are in a clear uptrend. It might look suspicious in the current environment, but the trend is up. Obviously, the trend can reverse any time, but I am not good enough to know when this will happen. And I am not at all scared by the article. Actually, it is a good indication that we probably go higher a little more from here.
There is a definative edge that can be exploited the past few years with the week upcoming the employment report. Market always seems to rally into the report starting as much as 8 days to as little as 4 days before the release. It then sells off for the following week or longer. It has been amazingly accurate, check it out on a chart if you dont believe me. Watch price action into the close on thursday, if market runs up hard and strong in last 15 minutes all the way to 15 min after the close. Guaranteed good # coming out the following day and a decent gap up only to be sold off viciously. I am not saying this is guaranteed but odds and probabilities show the market rallying some more come next week. I am more neutral to bearish, but I think they may keep busting the stops above and grinding it up a little more before taking it down.
This is an update of the prediction of the system. You can compare with the first one I posted. The system still predicts a market correction. May be black monday was too much to define the movement. Who knows.
A case for the Bulls. Stock Traders Almanac claims mid term Octobers to be "stellar". I vote early next week to be higher.
Maybe Woodward's book and another 70 billion to Iraq will shake the markets...... Wasn't the debt load from VN the reason the 70's bear was so brutal,(stagflation) the real reason rummy is still on the job is because they wanted absolutely no dialogue about Iraq (new Defense Minister guy) which has to become a drag at some point and the markies will discount, why not Oct 2, Bonds are already saying we're going in the tank