wednesday possible huge short squeeze, page-95

Can I answer a couple of questions in one hit here.

One question was about SPI discounts not reaching a base line I had on my charts back in 2006.

The line was just a rough reference to previous extremes and not any requirement for current action.

Some indicators are absolutes and others like that are more subjective to interpretation.

The other question was regarding my prognosis from here.

I was very confident about a low into Easter this year for all markets based on the usual cycles.

That produced a great bounce.

For some markets it suggested a pullback into late May and then higher into April or even November of next year.

The caveat was the 62 month alternating cycle we have seen since 1982 which suggested May 2008 would be a major high.

It was something I stressed as maybe as important as its high in Sep 1987 for that same cycle.

Where to from here?

I still feel July 2013 based on the 62 month cycle is probably a severe low.

I would be happy to see a high into April next year or even into August or November or even later in AUS.

Needless to say, a turn on Armstrong's date in latish April will be helpful.