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When we pack to travel the wild wonder, what to pack can be a vexing question. More importantly, what technology to bring and what does one do with ones investments?
I find myself in Macau a gorgeous blend of East and West culture. Modern but small and a very "thin" Internet flow so receiving and sending charts is painstaking. I don't want to be caught out and when travelling my past practice has been to do some major housekeeping and to pre-empt the markets next move.
One doesn't always get this right and I have previously seen markets take off whilst I am away and on the sidelines. A much worse premise is to see a market collapse and you can't get out. Considering the current levels on global markets, the potential upside appears limited and the sidelines seems a more logical place to sit and observe the next move.
This week has not been too tough to picture. Markets last week were again heading into over bought territory, the DOW was reaching a mid-term high and oil, metals, gold and the Aussie also. We have seen this week predictable vacillation and thus weakness. Many markets are due for yet another retreat but they have had such a tail wind that easing up is not so easy.
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Watch for a pull-back and manage existing positions closely because the charts have been telling us for quite some time that this is a likely scenario. Even as I sit here with limited connectivity I keep a close eye on Elliott and the charts continue to point toward a retreat which may well be underway.
Enjoy the ride
Tom Scollon
Chief Analyst |