snippets from my weekend report, page-8

Hi Red - exceptional analysis and I must say you've got me watering at the mouth with this suggestion of another waterfall around the next bend.

I've been crunching numbers all morning to try to convince myself that there is another around this bend before me - which I can't see around, unfortunately, as I can only see straight ahead of me at best - but I'm not a believer yet. The main reasons are:

- The extent of the rally from the March 09 low in percentage terms. The rally after waterfall one was about 15%. This one has been about 43%.

- The prominent "V" bottom that is now in place at the March 09 low. To me it stands out like a sore thumb.

- The pattern of trend leading into both waterfalls were similar to each other and different to what we have now. The indexes were "stepping down" before. Large multi week/month sell offs preceded waterfalls 1 and 2. We have just experienced a multi week/month rally. We are now in an up trend (I know that's my interpretation but have we had a secondary correction to the primary down trend yet or is this the first? I don't know I'll check it).

I note you prefaced your suggestion of a third waterfall with the word "speculation", and I don't mean to be at all argumentative, but I thought I would share what I have come with as a result of that.

Chris