So we’ll start to look for signs of profit taking as a result of the Greenback and bond market attempting to bounce. With sentiment not that great, it would probably take just a little bit of bad news to send markets into a fearful shake of the trees which would be short, intense but not likely to last very long.
I should probably put my 2 cents in on the Occupy Wall Street movement. After all, part of my job is social observer. The question most people are asking is this a passing phase or the start of something important and long lasting. Personally, I’m still trying to figure out if I think it’s a good thing. I will say this, the right to assemble and protest is clearly in the Constitution. The right to abuse property and private businesses is not. So there’s good and bad in this. However, I don’t think we’ve totally learned our lessons from 2008 and apparently a lot of people think the same way. The problem with political movements is they tend to be more emotional as opposed to logical. For the Occupy movement to last, it’s going to have to get some financing because it can’t go on the way it has. In the very least, the park will eventually become a health hazard if it hasn’t already. Sooner or later the Mayor is going to order police to shut it down and it won’t end well.
But I will tell you this, this movement reminds me very much of the Vietnam War protests of the 60’s. At first they were very unpopular but they didn’t go away and sooner or later the country got behind the movement even though they elected Richard Nixon as President. The theme is resonating all over the world. I think it’s the start of something very big but may take years to play out.
Finally, our chart of the week is the SSE which you can see did respond at the low end of the pitchfork and at the all-important support line. As I write this it’s about 125 points off the low. A very good start.
Click chart to enlarge
Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.
Lucas Wave International (https://www.lucaswaveinternational.com) provides forecasts of financial markets via the Fibonacci Forecaster and other reports. The company provides coaching/seminars to teach traders around the world about this cutting edge methodology.