SWING TRADING, RICHARD KOO, RICHARD RUSSELL, HUI INDEX
Richard Russell was interviewed on King World News and Richard Koo was mentioned. Roubini was talked about as well.
You can read it here. from April 5th, 2012
When you do read it Richard Russell’s interview , he’s talking about the big money slowly getting out of the market and how stealthy the big money is. He goes on to say that the big money takes the long view and probably doesn’t like this market.
How can you argue with the Godfather of newsletter writers.
Richard Koo is an expert on the great lost decades of Japan and the balance sheet recessions.
I don’t have too much to say today except for.
I agree with Richard Russell and Richard Koo in the article. I also have to say that I agree with Bob Prechter. Ok… now your wondering how can you agree with Richard Russell and Richard Koo as well as Bob Prechter.
Easy… a volatile market. I’am not saying I’am right but who’s to say that the market can’t just go sideways for a while. For my long time readers you already know this. I have said this before, when you look back in history to nations that did the same thing that we are doing now, it never turned out very well in the end. So whether it’s hyper inflationary or deflationary, it’s going to suck, big time.
I have been looking at the charts, mostly index’s, and I have to tell you that I’am not in the buying mood. I always look back in time and look for similarities in patterns, I know it sounds boring, but it intrigues me.
There are times in the past where the financial markets just slowly creep higher in the over bought position gaining peoples trust for about a half a year or so and then the bottom falls out, hits everyone between the eyes. I think it was Louise Yamada that said “the bigger the top, the faster the drop” or it might be Wall Street slang, but it’s true.
Now for the good stuff.
The next major pivot point area is between April 30 and May 7th, 2012. Actually those two dates are pivot point dates.
Remember, when a pivot point is determined, the patterns have to line up as well.
I also have to mention that depending on the rate of descent for the indexes that too will give clues of what to expect in the future.
No charts to post tonight, simply because there is no need to post a chart. Click here www.swingtradingforecast.com to read my last post.
There is one thing that I have been looking at closely, and that’s the HUI index “gold bugs index”. This index is in the oversold position, ready for picking, but there is a warning attached. The markets aren’t in sync together, what clue does this give us? There are plenty of answers for this but my own answer is simply money flow. If gold stay’s at 1600 – 1700 dollars an ounce and energy stays the same, the money moves out of the hot stocks of the past couple of years and into the gold miners. Hmm… could this happen? sure it can.
I read an article that talked about seasonality. It was about the fact that you can take the cliché “buy when it snows and sell when it goes” (there’s a dozen other ones, I know). This particular individual took it one step further and studied the years where it was the opposite. He found out that there was high probability that the market would actually go higher in the spring and summer if there was a sell off before May. The same thing went for November as well. The market would actually go down in November onward if the market was up before November.
Well… that’s enough for today.
Remember to read
Richard Russell’s article on King World News discussing Richard Koo.
interesting interview, good point. thanks for sharing.
Hi,
Thanks for the comment. I checked out your site and I enjoyed the read.