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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (7504)	1/5/2007 1:31:26 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Global volatility is really picking up. Crude, copper, wheat, gold have been very volatile and extremely weak this week. The US 10 year yield has increased in volatility in the past 4 months. The sterling and the Euro GBP/JPY , EUR/JPY are having their sharpest correction against the Yen the past 9 month. Thailand's stockmarket gave an indication of some of this increase in global volatility when it went down 19% one day last month. When volatility increases after a period of dormancy it normally does not subside until asset price valuations and price levels have gone to lower levels. Additionally, I am seeing gaps down on most of the foreign ETF's. Take a look at EPP, EMM, EWA, EWG, FXI, etc. Wow, it looks like we could be seeing the start of some major global corrections. If so, perhaps we will finally get the US correction we have been looking to see. This would reflect the negative divergences since October. John