Reiterating here the exponential effect of the sea shell or sunflower spiral, meaning to say, as the wave progresses further from the origin, in the case of the Dow, the current bull wave started in 2009. We have witness the Wave A and B and witnessing the completing of the final wave c of the intermediate Wave B, the entire corrective bullish wave starting 2009. So we are far away from the source and as it progresses away from the source, the amplititude of the wave increases exponentially.
Thus we see an exaggerated Wave 4 that took almost 6 months to form. We have witness the downgrade of US debt. The impasse of congress. No job labour weekend. Change of IMF chief. Resignation of ECB chief economist. EU sovereign debt crisis. Resolution of Greece impasse. Devaluation if Swiss Franc. All these the effects of Wave 4 of C of B. G7 has met over the 10th anniversary of 9/11 weekend.
Pretty symbolic if you ask me !
On the 10th year of the 9/11 anniversary, the terrorist leader number 1 is eliminated, and now as the world observe 9/11 memorial with the Americans, the G7 finance ministers meet to show resolve that they will tackle the global problems together amidst a financial western world in tatters. What a way to terminate the Wave 4 of C of B.
Yes the future is cloudy if not dark. Strategic macro structural problem is yet to be solved. Like a self delusioned drowning man that sees a saviour in a straw, a little hope will cause a final bull run. Politicians and world leaders are still clinging to hope and has pledged to do all necessary to "save the world" till it cannot be save. Last round the governments came to the rescue of the banks and big corporations. Now the governments are trying to save each other thru regional cooperation, IMF, world bank, etc. Till the Wave B culminates in the final crescendo of the financial tsunami.
But for now.....watch and ride the perfect wave in the perfect storm......
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