market update

G'day AIM buddies .. nice for those still holding to see AIM attempting to climb be it it is making hard work of it - the ongoing distribution phase since the August drop has turned into a more equalibrium type battle now between buyers and sellers with the buyers perhaps now having a slight upper hand - but the stock is by no means out of the woods. The following is my updated take on the global markets and zinc. Firstly the big drop in the indexes in August that I felt was going to turn into a new long term bear market has proven to be a very clear ABC correction only (bullish) and not an impulsive wave down (bearish) which is what I thought it might turn into - it means we head into 2008 with all guns a blazing and enjoying some blue sky Wave riding - if we are to change trend, it really does look to be at least 6 months away minimum now but probably alot longer - the chart has clearly spoken so i must abide by my Ruler !!! that said, my analysis of the charts right now sees us right at the juncture of another potential down turn (just to give everyone another bit of a scare) before we head on our happy bullllish way again - I believe the probabilities of this next downturn is within the next few days or so and lasting around 3-4 weeks only - I dont believe we will hit those recent lows again but I do believe 6000 - 6200 on the XJO is a distinct possibility. I also believe zinc has a bit more down side to go, even though most of its corrective phase has now been completed since its peak which is good news for the zinc bulls. So if the analysis is correct on both these fronts, I think AIM will start struggling again soon, along with most stocks, but the struggle will only be short lived, with November onwards for 6 months minimum potentially being yet another golden period for the markets. There is a good chance I will be liquidating my positions tomorrow based on these technical probabilites (and then shorting once proven), as although the dip will be short lived by my reckoning , it will be potentailly quite sharp.

Just my updated view on the markets for those that might be interested. It seems a little hard to believe 6000 XJO again (and of course I may well be incorrect), but then again the August technical predictions were also hard to believe at the time when the market was looking so bullish. Stay well Aimers and stay alert. all the best. cheers ECN.