xao ... lower than we think ...

  1. 5,816 Posts.
    Hmmm... there are a number of reports concerning the XAO at 4 year lows ...

    As chart shows recent levels are in fact lower than 1997 HIGH's with more downside to come it seems.

    IMHO we are witnessing capitulation and panic selling on a par with any major sell-off in our short history except for '87 crash.

    The notion of a rally aka Gulf War is debatable and always was ... US economic numbers are atrocious and getting worse and far more worrying for the Market.

    IMHO the Market will bottom soon ... but more likely to simply plateau into 2004 albeit with selected upward movements as we would expect driven by sentiment.

    Those desiring medium/long term FPO's will see opportunities to accumulate quality stocks at discount prices.

    This translates into a Market that may not go anywhere for a considerable period of time ... certainly not until the US economy improves ... and maybe a new President.

    Chart looks like this ...


    Cheers ...


    This is only my view ... read the red stuff.

 
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