MARTIN ARMSTRONG’S MODEL VERSUS THE SWING TRADING FORECAST MODEL
Martin Armstrong’s Economic Confidence Model… Click here…for Martin Armstrong’s website… show’s that we should see things happen in the area of the financial markets. I have been a reader of his work for some time, he has had an interesting life, up until he went to jail, long story. The man is smart, very smart and it pays to read his work,
This article is about the similar pivot point that Martin Armstrong has as well as myself. His date is June 6th, 2012 and my pivot point date is June 15th, 2012, pretty similar. Martin model shows that between 2012.43 and 2013.6 the financial markets should do well. My model is somewhat different in the fact that it’s not long term, it’s a short term algorithm. Martin’s model is all about cycles within cycles going all the way back to when the chariots were high tech. There are 2 pages with excellent short articles and they both have his Economic Confidence Models Click here for the first article.
Now for the forecast…
My next pivot point is June 15, 2012. Depending on what happens between now and June 15 is anyone’s guess but that is when the next pivot point is. When you look at the chart below of the Russell 2000, the small caps have basically went sideways for the year and depending on what happens here, if the markets go against the bearish patterns, think bullish. I was reading an article on King World News (an interview) with Rick Rule. He was saying :
“The thing that’s really on my mind today is the state of the junior equity markets. John Kaiser recently published in his newsletter that some thing like 60% of the junior equities, on the TSX Exchange (in Canada), are selling at half of their 12 month highs, at less than 25 cents a share, and have less than six months of working capital in their treasury.”
Wow, less than 6 month’s of working capital in the treasury for junior equities. You look at this previous post of Swing Trading Forecast to see what I wrote about the gold stocks on the HUI. There will be a good time to buy just not right now, we’re almost there.
Now to the chart of the Russell 2000…
The chart above shows the Russell 2000, 2 hour chart with a head and shoulders pattern that hasn’t broke the neck line. If the neckline is broke look out below, if it isn’t then look for Martin Armstrong’s forecast to come to pass, which isn’t a bad thing. You can see where I got stopped out on May 1st, the funny thing about the price that I got taken out on was the low for that day with TZA, there’s a first first for everything.