Wednesday, February 16, 2011

2/16 11:10

I'm ready to reclassify the wave count so that the current rally can be counted as wave 5 which could be complete.  I'm not ready to start extension counting yet.  My strategy is to keep powder dry for the selling opportunity of my lifetime.  This should have occurred last year, but for QE2.
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4 comments:

  1. AnonymousFebruary 16, 2011 at 8:23 AM

    Hi Steve, when do u think the top will be in? and at what price?

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  2. pimaCanyonFebruary 16, 2011 at 9:43 AM

    selling opp of a lifetime. wow! I hope to jump on board that bus too. You think it will start when I1 turns down in April? Or will SPX just continue going up until they stop QE?

    ReplyDelete
  3. SteveKotelesFebruary 16, 2011 at 10:26 AM

    I'm not convinced that the Fed will finish QE2. Any announcement that they will end it prematurely would be a bombshell. Central banks around the world are tightening now and food prices are creating havoc internationally. At any rate the stock market won't wait for the POMO to end, once it becomes clear that QE3 is an impossibility. Look at the bond market with all of the Fed buying. It was neutralized by private selling. The same condition will exist in the stock market. Tops occur with scratching heads, always. Pundits will scratch their heads over the first phase of the decline.

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  4. AnonymousFebruary 16, 2011 at 11:42 AM

    The top will not result from a loss of fed support. Rather, it will happen in spite of it.
    -TR

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