Away from my computer and charts all of last week so have misssed all the prognostications on the XJO thred.
At this stage the new moon has been absolutely spot on in signalling a short term top. At this rate there will be a lot of LUNAtics on HC. However, it should be kept in mind that to be powerful, all the new moons and full moons need something else to be going on at the same time. On this occasion it was the sun, Mercury and Venus zeroing in on each other and with other planets all in a very tight band. I mentioned all this in my posting last Sunday week. My feeling then was to expect the unexpected - the 500 point rise in the Dow last Monday certainly set trading for the week very nicely.
Now that we have seen a top - what next. My astro studies continue to see this as a very important phase as the past three weeks have certainly been. Short term I think the high on Thursday is only a short term peak. In fact virtually everything I have read this morning would tend to suggest that everyone thinks that we are about to have a correction - always a worry so can't rule out the market going back to have another look at last week's high. Overall I am only looking for a short term decline - but this will have to be monitored as the market continues to reveal its secrets.
One good thing about the market advance going so far so quickly is that it has put paid to this being a Wave 4 (Wave 4's cannot cross Wave 1 - one of Elliott's hard and fast rules). This supports my view that 6th March low was the end of big Wave A and that this advance is the first part of the big Wave B. Now just to get heaps more people offside, what if .... the March low was the end of the bear market? I can visualize a situation where if inflation does break out, then stocks could move ahead a la Zimbabwe style which, incidentally, was the top performing market in 2007. {But of course that was measured in Zimbabwen dollars.} We will only be able to decide this as we see how the waves unfold. But for now I will stick to the Wave B option. The bears could make the argument that Wave B is already complete but I don't think so.
One little market point from last week and perhaps this has already been mentioned on the XJO thread - on Wednesday there were two more 52 week highs than 52 week lows in our market. Been a long time since we saw a plus figure.
(20min delay)