Fri March 4 (a)


Key global equity indexes have been overextended and overbought
for too long – similar to what occurred during 2007/2008 and the
inevitable result was the 2008 waterfall crash.

The same pattern has repeated – the market has been stretched
and stretched and stretched a bit more and prevented from
attaining the natural equilibrium it desires.

Just like a bungee cord will always release it’s elastic potential
energy, so too will the market as it moves to a position of natural
equilibrium.

Unfortunately though, the market bungee cord is now extremely
overstretched and so when it’s released the reaction can be severe.

[I haven’t seen any ‘bungee cord’ references to describe the current
overextended market conditions – please let me know if you see any]

Friday, 4 March 2011 – 07:03 GMT

Advertisements

I read comments but they're not published. Troll IPs are automatically trashed. [crinia AT gmail DOT com]

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: