Summary for Week Ending 2nd June 2007
In the last two weeks the bullishness has slowed down a little and this is evidenced on this weeks chart where the price has dropped below the previous line of advance. Whilst it may have slowed a little it still hasn't stopped going up, albeit without the vigor.
There is little to be said at this point in time. Up is Up in any language that you choose, and the secret is to sit on your hands and do nothing until a signal arrives that indicates that times may be changing. We had a little correction the previous week of 27 points which is close to the 30 point marker we are looking for, but close is no cigar in this. Until we get a correction greater than 30 points then the trend remains in place. That's the theory and it generally holds up well, so thats what we'll follow.
As the market gets higher and higher and approaches significant historical levels, out come the bears who have had nothing to say for a very long time so they suddenly become very loud. It is said that a bull run is never complete until the bears become bulls. If this is correct then the amount of dissension out there would indicate that this run has quite a way to go yet.
the 12th July date is looming on the horizon, and a lot will depend on how the market trades into the date. If it goes with a rush, then we'll get something out of it. If the market limps in then it'll be best to ignore and expect more bullishness. This is still a month away and there's plenty of trading between then and now.
If we get close to 1553, expect a panic sell, but nothing more than that.
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