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Online Share Trading

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My opinion-viewer discretion is advised.

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Russ
Super Contributor
We will have a general rally/consolidation for about 2-3 months where The alsh could gain about 1500 points,then another big down leg with the bottom of this correction in about 6-8 months time. I base this on the alsh chart pattern followed in the big correction of 2008 as well as an analysis of charts worldwide. (I made previus posts on this in july and august last year, before this correction started).As I mentioned then, in the 2008 correction the alsh dropped about 34%.Our high in April 2015 was at about 55000 so we might drop to about 37000 before this is all over. During the next couple of months gold will be out of favour but the gold index will complete the right shoulder of a reverse head and shoulders pattern which will only break out when the alsh (and world markets) start their final plunge in a couple of months time and then gold shares will come back with a vengeance. Kindly note that all major stock market charts worldwide are showing this same warning of a big correction (Dow (sorry quantitative easing), Europe (nice try Draghi), Australia (sorry ex-pats), Hong Kong, China (sorry failed stimulus), Nikkei etc). Do you really want to invest in a market that is being kept alive on artificial respiration (artificial respiration is any method of forcing air into the lungs in a person who still has a pulse but whose breathing has stopped)?
2 REPLIES 2
geordie1
Super Contributor
thanks for your insight and views on this-I concur I have been bearish for a while and nothing has changed to alter that view-cash is a good option and I will sit on my hands for a while longer-I am not completely out of market but I have a bigger percentage in cash than I ever have had in my investment career
Russ
Super Contributor
You are welcome. The markets are oversold on the short term charts (daily and weekly) so a relief rally is to be expected. This is tradeable on the long side, but I personally wouldn't be entering any long term positions. Just my opinion.