Thursday, September 14, 2006

SEARCHING FOR A TOP



It only took one year of MACD (also other momo indicators I use) divergences to seal a top of the longest running bull market in history. In RED you can see it has now been diverging as price rises for 2 1/2 years!

So either the MACD rises above downtrend line or price falls below uptrend line, IMHO

Bear did not correct maladjustments, and extremes from bubble action, in 2001 when FED began to draw down rates to a mere 1%, they decided to create ANOTHER FINANCIAL BUBBLE instead of dealing with after math of stock bubble bursting.

We see AIR coming out of housing bubble, so IMHO it is only a matter of time before the market begins PHASE II of the Secular Bear Market.

Duratek

No comments: