Year 2000
We are now witnessing the same kind of volatility we had at the top in Year 2000. Notice the swings os 1500-1750 points in a matter of days or a week or two. A series of lower highs, four, traced out over eighteen months before the market finally collapssed. This is the nature of a bull bear fight after a 18 year bull market.
Now as our friends at Elliott Wave have observed we may be at the end of a 233 year bull market dating back to the creation of hte USA at Yorktown. We are certainly at a 40 yera high going back to 1974 and then back to 1932-34 recovering from the 1931 Dow low of 31.
Crude oil
Crude oil likely completed five wave up in 2008. It is now entering a Wave C to the downside. This has the potential to end lower than where prices bottomed in 2008. I read this morning that Nigeria is imposing currency controls in the wake of Russia's 17% interest rate. So the collapse among major oil exporters is well underway.
Comments