In this article we show part of our tools to predict that the market correction that just started will last longer than most of analysts think.
Our reasons for thinking so are many indicators, but of particular interest are the two depicted in the graph below.
One YBR=Yellow Brick Road , speaks for longer term view Two EURO projection speaks for a relatively short term view.
They seem to conflate at this point and in conjunction with other tools point to a RELATIVELY LASTING correction We are glad to provide more support for our thinking for those that are willing to contact us for further information.
The YBR is our Master Timer for all markets. As it is the tool we use to predict the REAL-DOW=DOW/EURO. Being the Master timer it helps us to support other tools for predicting markets as the (ANTI) correlations play major role in our analysis. We are aware of these correlations being changeable and have tools to deal with them.
The EURO predictor is our dynamic cycle tool that allows to see EUR/USD movements in near future.
At this time the YBR tool indicates turn down in the markets which was known to us, over 5 years ahead, to be the 6-9 April 2012 (YBR is able to project/predict even 10+ years ahead) even though that is not relevant for our current purposes.
EUR projection cycle indicates the short term top 13-14 April period.
Combining these projections we are reasonably confident that:
1) EURO and STOCK Markets are still very well correlated 2) Most likely path in coming days is down for both of these markets and the low of about 1355 on EMINI M2(June) is not likely to hold. We believe that as a minimum , the downside trend will last into 23rd April and could stretch into early May.
Size of the drop, is not that relevant if we can catch the approximate time for the lows, but we use our Proprietary AP(Attraction Point) method to ascertain the size price dimension of the move. (note: APs are available on all time frames from minutes to years)
We do have many other tools that directly address each market, but via (ANTI) correlation we think that
OIL will head lower correlating with the market (at least OIL stocks will).
GOLD maybe able to fight the recent correlation with stocks and attempt to rally, but we think that until stocks turn up again GOLD will not be able to completely escape the correlations with stocks.
BONDS Will Anti-Correlate as the case has been lately. We are not bullish on bonds longer term and think the interest rates bottomed. In fact the lows of 2008 have not been broken in 30 year bonds as predicted by our article on bonds in 2008 at this site.
JPY Maybe Able to to Anti-Correlate for a while, even though we are not bullish on Japanese Yen on intermediate term basis.
APPL So far, this stock was able to rally even in the face of the declines experienced everywhere else. I believe that, next phase of decline starting within 48 hours may not be so kind for this stock as more substantial declines in indices will require for APPL to take the hit. We admire the technological superiority of APPL, but nothing lasts forever and there are not that many rich people left in the world to pay $600 plush for a phone. To be fair to all others, APPLE did not invent many USER FRIENDLY ideas and tricks, some of those were in works since the days of research conducted by XEROX, and as far as I know mankind used fingers to page through newspaper since the days of GUTTENBERG (:-.
Technically speaking , though, Next level of AHAP (annual Attraction Point for AAPL is around 680 and it maybe able to jump there within next 48 hours to hit the WALL).
For questions, inquiries, subscription please contact us at http://borisc.blogspot.com For reference to our previous articles (including YBR public predictions) click here.
