Monday Oct 17, 2011
The seasonal lows came early this Fall. They occurred August 8 and October 3-4. We are now in a corrective recovery. Wave A up appears to be peaking perhaps this next week. That would be followed by a Wave B down and then C up, probably with a Santa Claus Rally.
The Market Perspective Oct 16, 2011 which was yesterday
Well that didn't take long, you can't say we didn't warn you!
Here you have it, move from near zero stocks in bullish formation to 75% in two months, talk about a mood change! The 248 point down day on the DOW ushers in Wave B as we described in our Summary yesterday Another buying opportunity lies ahead. It is not too early to begin entering buy limit GTC orders for what you would like to buy where you would like to buy it. If not filled, no harm done.
Note by the way how mood collapsed quickly from July 25 to August 8. It then took near two months to regain that level again. Our point is that the rapidity of the collapse, which has now begun, will not doubt scare off those that jumped back in the last few days, adding to the sell-off frenzy.
As always TMP believes that tracking the internals of the markets is much more instructive than
talking heads on CNBC
the level of the stock indices
what some politician says or what the most recent poll indicates.
More tomorrow morn but the dollar is up and gold an silver down.
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