Nostradamous Does Not Work Here, but - UPDATE
Trendlines are dead, cycles are the new power house within Technical analysis. Our blog posts over the last couple of months have been bearish. Simply because the cycles said it would be so.
Lets review some of our posts from the last couple of months only:
Winner: This is what distribution on the SP500 looks like We noted that heavy selling was more so on the downside than the upside. Distribution of stock float was been sold to the less informed. How true that turned out! Ouch!
Winner: Trucks and trains carry the goods so we must watch the transports We noted that one must watch the Dow transports, the more sensitive element of the Dow theory. Watching for prices to correlate to the cycle. Sure it was a little late.
Winner: John Cleese cycle method on small cap stocks Small caps have confirmed the cycle once again.
Winner: Copper sending a message on world growth Stubborn commodity selling off with stocks.
Warming Up: The Australian economy is in the long drop Aussie dollar much loved ponzi scheme will be ending very soon. The short of the next six months.
Loser: Long term interest rate cycle Bernanke doesnt want to see How could we be bullish when we were so bearish on stocks, huge mistake. Price did execute a massive inversion to the cycle so it turned out to be a great short.
Warming Up: US Dollar cycle review Found strong support, but no break north yet. We are with Harry Dent on this one, 2012 could be the year of the mighty dollar.
With no QE1 or QE2, the market has NO sugar.
The market will find it true value.