rebacka's - groggy bull - thursday, page-19

N-I-C-E. Looks like I got my little Wave 4 down and we are now in Wave 5 up on the SPX. If I am right and obviously there are only probabilities in the market – no guarantees – following this little Wave 5 up we should have a bigger Wave 4 correction which would then be followed by a bigger Wave 5 up.

The waves on this rise have been very hard to fathom but if this scenario should play out, then at the end of the bigger Wave 5 up we would have to seriously consider whether it marked the end of the rise that began in March 2009 or whether we actually are in a new age of equities. That is a question for another day.....

Could the bigger Wave 5 up coincide with the listing of Facebook – has a nice ring to it. With the hype that is surrounding this IPO and markets being the creature that they are, it will mark some important signpost that is for sure. Looks like they are aiming for a listing in May - another sell in May and go away. No that would be too easy!!

Just a couple of little niggles this morning – this article is a bit of a worry

http://www.bloomberg.com/news/2012-02-01/global-strategists-abandoning-bearish-views-after-missing-rally.html

These clever people that are paid lots of money to get the direction dead wrong are starting to change their opinion. Funny that they have to wait till the market gets into my upside target box to discover that the world actually isn’t ending after all.

The other little concern I have is that the price of gold didn’t correct while equities had their four day reaction. Probably understandable when we note that the US dollar hardly rallied at all. But just something I will have to be aware of.

I’m out of my office for a couple of weeks so keep the XJO thread safe in my absence.