Hello everyone, I do hope you had a great day. I have been on the road all day, so I will endeavor to keep tonight's post concise and to the point, before my eyes drop and I fall out of my chair!
One thought before I do that, I usually lead every night with a story concerning the epicly overvalued stock-market. Some might think that I over concentrate on the stock market, and that there is much more going on in the world than a bubble in U.S stocks. This is true to an extent, But it misses the point. Here's the reason I concentrate so much on stocks.
The stock market is the human races method of independently valuing its own productive capacity. It is akin to staring at our reflection in the mirror and valuing what we see.
So, When the stock market is insanely overvalued; it suggests that the human race is out on a limb regarding its view of itself. much like Narcissus falling in love with his own reflection until he eventually keeled over and died! We are so enamored with our own abilities that we have abandoned all care and attention for risk and loss.
I have probably presented the story from about ten different angles at this stage. The common thread of the stories I present every night is this. Stock market valuations are about to keel over and die! And the pendulum will swing to the very opposite extreme.
To a point where the biggest companies on earth will be valued at pennies on the dollar of current extremes!
Where the property which you always desired, but is now out of reach, will suddenly become affordable!
And that is where a generational wealth creation opportunity lies. I will be there when that opportunity arrives!
Now down to business.
UPCOMING RISK EVENTS:
USD: ADP Non-Farm Employment Change, Unemployment Claims, Crude Oil Inventories. EUR: N/A GBP: Services PMI, Net Lending to Individuals m/m. JPY: N/A
DOW JONES INDUSTRIALS
My Bias: market topping process completing Wave Structure: Impulsive 5 wave structure, topping in an all time high. Long term wave count: topping in wave (5)
I have shown another possible alternate view of the recent sideways action in stocks. It is possible that the drift sideways for the last two weeks is a contracting triangle in wave '4' blue. I have labelled the internal waves of the triangle for clarity. Triangles are a penultimate move. So again we can expect that wave '5' blue is the final leg of the never-ending bull market!
If wave '5' blue reaches equality with wave '1' blue, That projects a possible target at 25354. It remains to be seen if wave '5' itself will extend in structure to allow that high to be reached.
For tomorrow; wave '4' blue completed at 24731, this low must hold in order for the triangle idea to remain valid.
Read more by Enda Glynn