Sep 30, 2014|
Waiting on a Correction? - LA Little, Technical Analysis Today by Barry and Kim
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Little for MarketWatch and he wrote a piece that caught my attention it's called is this the correction. We've been waiting for LA how -- -- don't find our unity and. Terrific in a -- -- a good piece here and I said to myself. We've got to get him on the year to explain. Why this might be time you know your your city your. I espousing the same thing is Jon Huntsman and Robert -- a lot of people call -- for correction. What makes you feel that we might be set up for -- stock market correction. Well first -- -- want to put that same boat with those guys out -- they seem like -- repairs but he com. You know -- I think you you know in and in most of grocery means you know simple for a long time now has tried to staple as long as possible. A -- the issue is that you know if you if you look at the Russell 2000. And if you if you look at history right this small caps typically the ones that in the state at the end of the long wrong. And done. You know the back and look at the charts of the Russell now there's about a year of consolidation. We're -- close to what I call one point -- watcher or price points early lows. And typically what happens if those -- in especially big break on intermediate term time -- which is a weekly chart yeah. Those. Breaks. Typically lead to ask them down. And what I mean by access movies you know you can get -- it in 20% down. And it it would seem like 1520%. Is just unbelievable anymore but the downside but it will happen at some point just like you know you mentioned as late as as we came on. It is outlawed in -- -- correction in 2010. I don't want to go out on the last -- -- in our ballast when he was plus 20%. Yet 22 on the S imperialism. Which -- you wrote in the third paragraph this is when they got my attention. Is third paragraph last sentence it doesn't require you to immediately head to higher ground but it does suggest that you find an umbrella what does your umbrella. -- -- the umbrella is that you know it it may be an defaults that we have a lot of false signals and that Washington a lot without. And -- all the he just because you have the conditions settle for something to happen doesn't mean it will happen and so I actually you know arraigned as. You know use the storm approaching here he's seen as possible. Until we see the breaks though we need you know. So that it. Two meter mark disappointment. I I look at the charts and I try to read them just like you know that broke back years of early nineteen hundreds where they Brit that take. And I am looking for supplying the man on the -- looking at a particular price points and think okay -- are willing to sell at lower prices. If they're not it doesn't matter. If they are that in matters in -- police that they in fact we're willing to sell at lower prices. I would I'm willing to -- pops open or lower prices. That's suggest that open. Worst system that they Willie that's when you get a larger decline in this particular case you have the Ross -- consolidated for a year. If you break under boatload -- -- that all over the last year underwater. In -- create this huge problem trying to come back up. Would it would tell us the long term the if you studied history the stock market. How do stocks respond to rising interest rates when you look at the historically. Well if it is it rising interest rates are not good for stocks but but I mean we're content from extremely low level and -- right. So I'm not sure that that. You know it argument is is is easily applicable now -- -- we -- yet. Is he sent rising rates and we still have a great at all the whole ordeal good. So it it's gonna take a while for the race. Structure called for -- I think the bigger thing is if you if you just look not look the world markets as well world markets bush brought. The currency rise of the dollars putting you know forty inflation and other countries get -- and their currencies. There's a lot of issues was best moves in currency and that's what we have right now in -- back and look at 2008. Crash. In 2007. Excuse me 2008 -- summer 2008 dollar shot. And that was when we saw big moves down. And and we don't want not quite there yet I think is gonna take time it is in fact it does happen but but we're moving that direction you know need is. -- -- -- -- Very good while lately we like your analysis where your very reliable forecasters who appreciate your time. I appreciate. LA little marketwatch.com. Good source of information I'll tell you once docked him.