We stated in our Blog of Tuesday Step 3 Down started on Jan 22, 2015 . Step 3 itself will have 5 parts : One down was completed on Feb 2 morning . Yesterday Two up may have been completed at around 12:30 PM and we started Three down. All the gains of yesterday were wiped out in the last half hour of trading. After the current rally is completed , we will have more significant decline in 3rd down which will take us below the support provided recently. Two Up may go slightly above the Jan 22 highs to suck in more investors but the major trend after the rally will be down
3 rd down should be pretty sharp. Any significant move above Jan 22 high will nullify this prediction on a temporary basis. Eventually the market has to go down soon.
Euro zone decided yesterday that they will not honor Greek bonds anymore. As a result Greek market is sharply down today and other European markets are also weak.
Because of low interest rates around the world , it is unlikely that we will have higher interest rates anytime before the end of 2015. In fact 10 year rates on German bonds are lower than 10 year bond rates in Japan. It has never happened before.
Most of the countries are devaluing their currencies to gain trade advantage against others. it will not work. It will have negative effect on 40% of S& P companies for at least the next 6 months.
DJI
SPY
3 rd down should be pretty sharp. Any significant move above Jan 22 high will nullify this prediction on a temporary basis. Eventually the market has to go down soon.
Euro zone decided yesterday that they will not honor Greek bonds anymore. As a result Greek market is sharply down today and other European markets are also weak.
Because of low interest rates around the world , it is unlikely that we will have higher interest rates anytime before the end of 2015. In fact 10 year rates on German bonds are lower than 10 year bond rates in Japan. It has never happened before.
Most of the countries are devaluing their currencies to gain trade advantage against others. it will not work. It will have negative effect on 40% of S& P companies for at least the next 6 months.
DJI
SPY
IWM
TNA
XLE
ERX
ERY
UVXY Going Higher
SVXY
GLD
NUGT Going Higher
TLT
TMF
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