Okay, so here it goes,
Ron starts off with the teaser "Are the indicators in place for a market slide of TITANIC PROPORTIONS???...stay tuned, etc."
First, Jerry discussed the Bradley Indicator which he now says was due to come into play on either July 20 OR July 24 + or - two days - the recent closing high being July 17 and the print high on July 20.
He compared a chart of the market during the 1987 crash to the chart of his current projections for the market that his work with the Bradley Indicator is forecasting. Needless to say, they are strikingly similar. Now this is where I need help - on the chart for 1998 he showed the decline beginning now at about the 7000 level and ending bottoming on November 2, 1998 at about the 4500 level. What index is he tracking here? Well, you can see it is a horrendous decline. It does, of course, have ups and downs - it's not straight down. Also, it seemed that the bottom stayed flat or nearly flat through the rest of November and through December, too. He told Ron he was reasonably certain that we are headed for this large drop and he wants to see a break of 8525 to confirm it. He said that the Bradley Indicator takes on more importance when seen in confirmation with other indicators.
Then he discussed the Titanic Indicator - more new lows than new highs after a recent market top - which predicts a drop in the market. We also saw this indicator work after the May 13 top.
Also, three peaks and a dome =MINIMUM decline to 7300 by end of year!!
He is out of the market completely. Flat,not short. Next week, he sees a strong rally which he will use to go short. He said the forecast would change only on a break above 9412 but you would still need to see it confirmed by strength in other market indicators as well - A/D line, new highs/new lows, Russell, etc.
Let me know what that 7000 level could be - did CNBC leave the numbers from 1987 on the chart for 1998? I couldn't remember what that market top in 1987 was.
Have a great weekend all.
Peggy |
