Midweek Market Update – Dec 3rd
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Bob Loukas is the founder of The Financial Tap. With over 20 years of experience in market analysis and trading, Bob is a life-long student of economics and has an abiding passion for the financial markets.
He is a leading expert in Market Cycles. His love of Cycles emerged from the study of the work of Walter Bressert, a pioneer in the field.
Originally from Sydney, Australia, Bob has been settled in New York City for the past 16 years. His background is in Computer Sciences, with extensive experience in the Financial Software arena. Prior to launching The Financial Tap, Bob served as a senior executive at various Fortune 50 firms where he led development of financial trading and reporting software.
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But if the dominant bull market trend resumes, as I think it will, the traditionally strong holiday period should lift the market significantly higher. If the bull is to remain alive, it will need the FED’s help, first by first keeping rates unchanged and then by extending support for zero interest rates.
Flexibility will be the watchword for equities. We don’t need to always be right, but we must avoid being wrong for a significant amount of time.
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But because the timing and evidence support another significant move lower, I believe that any rally will be very short lived. The new Daily Cycle rally should be just enough to clear oversold technical levels and allow the Bollinger Bands to expand to accommodate the next big decline.
For those asking whether the current decline could be a short, 16 week ICL, I just don’t see it. A perfect double bottom forming with the July low would wrap a nice bow around the bear market, but the evidence doesn’t support it. It is not impossible by any stretch, but it is very unlikely.
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This content is for members only
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This content is for members only