Robert Prechter says bull market over

[boedicca]

Big Money likes dips which cause panicked retail investors to sell into the bottom. They profit from this pattern.

 

[B. Kidd]

Hmmmmmmmmm................. Up over 900 points since Wednesday morning. Still going up. Looks like it was a case of Nervous Nellies.

Don't put your party hat on, just yet. Lows get tested again within the next two weeks.

 

[william the wie]

I think that has begun.

 

[B. Kidd]

I think that has begun.

New lows being tested sooner than later.......down 469 today..........

 

[william the wie]

I think that has begun.

New lows being tested sooner than later.......down 469 today..........

I understand your reasoning and it is sound as far as I goes but I suspect the real damage will start with either Iranian oil dropping oil to say half of today's price or China's problems get too bad to gloss over. The coming rate hike will get blamed but I doubt that will be the real problem.

 

[Zander]

The market is no longer a "buy the dip" market, it's now a "sell the rally" market.

 

[Zander]

When bubbles burst and recessions hit, Congress and the Federal Reserve should refrain from trying to “stimulate” the economy via increased spending, corporate bailouts, and inflation. The only way the economy will ever fully recover is if Congress and the Fed allow the recession to run its course. -Ron Paul

 

[william the wie]

When bubbles burst and recessions hit, Congress and the Federal Reserve should refrain from trying to “stimulate” the economy via increased spending, corporate bailouts, and inflation. The only way the economy will ever fully recover is if Congress and the Fed allow the recession to run its course. -Ron Paul

I agree but for different reasons than Paul uses. The use of three or more choices for the same product in order to get more and faster sales in nearly all markets also creates three or more levels of symmetry of scale in math terms. That is the definition of a chaotical system.

I go through "The Great Courses" Chaos course every couple of years and "The Essence of Chaos" by Lorenz when I'm really desperate to figure out what in hell is going on. Short form there are low profit commoditized markets and there are chaotic markets, which are more profitable. Given that current economic models are based on the myth of equilibrium instead of the reality of strange attractors the Fed and congress will not merely screw the pooch but bugger poor Brutus blind as about a 10 to 1 favorite.