I'm still bullish, I think these markets have much further to go on the up side over the next 36 months... surely we could see further consolidation, but it doesn't shake me... what would make me bearish is another huge rally as we saw in the NAZ accompanied by very bullish sentiment and a high degree of speculation... during the recent NAZ explosion, even taxi drivers (no offense intended) were giving me hot tips about tech stocks much like the elevator operators did during the 1929 rally, so I heard...<g> today, there is so much worry about the markets being suspect, and I take that as positive...
I doubt anyone will be going to their margin department these days to margin their accounts to the hilt the way they did during this recent NAZ explosion, those days are gone, those speculators are absent... if I'm correct, then this means the speculation has been removed from these markets, this is bullish... also, another positive factor is everyone is now worried about earnings and the economy... just last year everyone was looking years ahead and now investors are fearful of looking beyond the current quarter... poor earnings reports and poor expectations are just what produces great surprises the following quarter...
So here's what we have, speculation has been significantly reduced and worry has significantly increased, this is the requisite for a sustainable upward move... and technically, we've just completed at 39 month trading cycle low and I see these markets poised for a substantial move into much higher ground... the advance/decline and the new high/new low ratios have been incredible over the past four months, the tide has turned towards higher equity prices.....
These are just a few of the reasons I'm bullish right now.....
GZ |
