Courtesy of Read the Ticker.
Cycle do exist in the market, once again price action of the SP500 is to enter into zone of uncertainty.
The time frame of the cycle turn is about 8 to 16 weeks. The last Kitchin cycle roll over resulted in a 20% plunge and if you remember it started with the earthquake in Japan and ended with the USA downgrade. Maybe this time is starts with trouble sourced from IRAQ. As stated before with the chart of the Dow Transports a price reaction (not calling a top) is very likely at current level. Get your popcorn, buy some OEX puts, if you must, and watch the show.
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Investing Quote…
..“The Tape Reader’s profits should develop naturally. He should buy or sell because it is the thing to do – not because he wants to make a profit or fears to make a loss”…
Richard D. Wyckoff
..”Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected”..
George Soros
