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Yes, it’s time for a spring clean – after all, it is the northern spring.
But this current market easing has little to do with the European crisis – it really is just because markets were getting ahead of themselves – as Greenspan once said ‘irrational exuberance.”
So let’s look at a few charts:
Our market has some further easing to do:
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The charts say the DOW could be there but I doubt it:
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But oil has no reason to go higher:
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And in the medium term copper also needs to get back closer to rational levels:
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Gold will move higher but no time soon and it will struggle along the way:
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And demand for the Aussie is unlikely to return for some time:
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I don’t see doom and gloom ahead but if you bought over the last few weeks - as Mr. Buffett did - then maybe you are feeling a little gloomy, if you are still holding those positions.
It is still a trader’s paradise – but you must be in and out fairly quickly, being true to your tried and tested indicators.
Enjoy the ride
Tom Scollon |