Hamilton's E-Wave Analysis

TSX update

tsx nov 23 2014

This time it supposedly was a 40 beep lowering of the Chinese CB discount or whatever rate, from 6% to 5.6% AND more Draghi talk about an urgent need to do something. In any event it was good for a 2.6% rise in the DAX (you have to hold a 10-year bond for a few years to get the same return!) and a pathetic 1/4 percent in our own index.

For the past 5/6 years markets always seem to go beyond what they “normally” do and here again we have retraced more than 62% and may go even higher. Nevertheless we note that the is now equal to the a in the ( so far at least) a-b-c correction. Moreover the and MACD are touching on overbought readings. Stepping aside is the prudent thing to do here.