Could ALTA retract? I said that because many stocks retract after such a good run... BUT: ALTA went up gradually: there has been No euphoric buying. Many ALTA holders a probably looking at ALTA as a long term investment right now. I suspect this because of what you can see on the graphs and the steady and solid rise. ALTA has now established a good trend up and many indicators are pointing up. Accumulation/Distribution curve has finally turned up as well. If we retract, I doubt this will be below 1 3/4... Just IMHO, of course.
In the background, the currency and economic troubles in Asia WILL reverberate in other continents (Greenspan, last week said that it "could"). read "Manias, Panics and Crashes" by Charles Kindleberger... amazon.com
(not an easy read at all! but informative)... p.12
"According to Minsky, events leading up to a crisis start with a "displacement", some exogenous, outside shock to the macroeconomics system"... "the origin of this displacement can be speculation, end of war, bumper harvest, crop failure, widespread adoption of an invention, some political events, suprising financial success, debt conversion lowering interest rates...."... Well, well, well: we have plenty of outside events these dasy and my take is that politicians and economists are scared, many don't understand yet the ramifications of Asia, El Nino and ongoing stock speculation for our future in the US and the future of countries outside Asia... They are not going to tell us blankly that "we are doomed!" They will probably try to damper the shock (i.e. preventing gold to go on a speculative run)...
I think we are in for very interesting end of the 20th century.
Volatility will allow the smart investors to make money and preserve their assets...
Good luck all.
Gaston |
