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Strategies & Market Trends : Classic TA Workplace

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To: ild who wrote (129648)2/16/2006 2:19:40 PM
From: Perspective  Read Replies (1) of 209892
 
Agreed on the long-term FA need. HOWEVER - I'm finding that the longer term is sometimes SOOOOOOO much longer that it can seem nearly infinite. Look at how long some of the airline stocks have remained flying high despite abominable fundamentals. I think you have to understand the FA of the general economy to make a determination of the overall market's bull/bear cycle, and then trade TA in synch with that FA read.

I fully believe that the long-term prognosis is miserable for US equities, but it won't go down until the economy begins to weaken, and that won't happen until the housing market blowoff wraps up and the post-housing bubble aftereffects (cashed out refis that haven't yet been spent, speculative construction jobs, fat broker bank accounts) have mostly dissipated.

Then we get down to the serious business of correcting the astronomical global imbalances that have built over the course of this multi-decade secular American bull.

BC
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