Some relief experienced last week, but I believe the potential for market volatility is still high. To me this market crash appears to have more to do with a loss in trust. Overall the market has experienced an earthquake. The grounds on which it operates have been shifting and it is now nervously waiting for the tremors. This earthquake is a result of simple supply & demand equations being manipulated and altered by some very big players. The biggest news being that the Fed took unprecedented steps by announcing that Fed rates will be held at near zero until the middle of 2013. The loose money policy will likely continue to drive bubbles in the market.
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Continue to hold until the slope of the intermediate line begins to turn positive. However, the 200 day simple moving average has begun to turn negative indicating there may be significance to the latest market move and that one should be cautious with any entry. |
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