Summary for Week Ending 28th April 2007
As we can see from this weeks chart, the market is off and running. There does not appear to be anything that will hold this horse back, and the bulls are very much in control at present. I did read some 'Elliott wave stuff online during the week, calling for an end of days very soon, however this policy of top picking ( which is endemic in the Elliott community) is mostly a waste of time. For some guidance on this issue, simple look at how much the market has spent in bearish territory since 1980. Not too much! Whilst not 'having a shot' at Elliott analysis, I personally believe it should be tempered, with less emphasis on the forecasting and more emphasis on the nature of the market.
In keeping with this theme, if we look at the last couple of waves in the market we can see that we have had 'air gaps' and 1 day countertrend movements. This does indicate that the market is running white hot, and as I said last week, this is unsustainable in the longer term. However it must also be realised that it is indeed happening and looking for an exit point is fruitless at this stage, since the run is still in its infancy. We may see some consolidation over the coming weeks, and maybe even some high end volatility with big declines followed by even bigger recoveries. All of this is symptomatic of a market in its final stages.
The end may be nigh, but I'm not betting on it being soon.. Not just yet. Ganns favorite numbers may come into play. Looking ahead we have 45 days ( Monday ), 60 Days (13th may) or 90 Days (12th June) .. Also look out for 49 days
Looking ahead... more of the same.
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