wednesday woes, page-53

Voltaire - thanks. Elliott wave is difficult in the best of times, and worse during periods of consolidation prior to a change in trend. the 1-5 count and ABC correction is great, but I believe there are different counts/rules for consolidation phases. Which makes it difficult to call, except in retrospect. Don't like rear view mirror analysis as it helps me see where I stuffed up! hehe.

E - you're right about prime mortgages, I don't think they will ever be in trouble. They are mortgages on people with GOOD credit etc. The problems are going to be in junk bonds and credit for private equity. Remember, companies are now starting to have trouble getting finance for big private equity deals - which is not good for stock market liquidity. Remember, the "dryer" the market gets, the more there is a chance for a crash in perception ==> stock crash.