MBO Issue 99 Special Update: Where is the Bottom?
By Lawrence
The stock market correction so far has been right on time following my projection from the February issue and has tagged my nearest downside target at this point.
Here is what I expect to happen next.
When Will the Selloff End
I am overwhelmed by so many messages asking if they should buy into this bottom. Everyone is thinking that it is a once in a life time opportunity as touted by all these financial gurus.
Well, trading the short term bottom is one thing. Whether this is a once in a life time opportunity is something else all together.
Use some common sense here and stop your mind from seeing everything through the lens of greed.
The whole world’s economy is now damaged. All these banks have so much hidden losses the governments are now planning to bail these garbage out. Do you really think people will not rise up and revolt?
It is not a once in a lifetime long after this daily / weekly level selloff. It is also not a market shock like previous market crashes that can be “fixed” with printing money. It is the start of a new era that can take several years for our world to adapt to.
So it is a tradable bottom on weekly once the downside target is tagged but nothing more.
For long term bottom to develop, we will see how things unfold in coming months or years.
Stop Thinking in Linear Chart Patterns
As I explained in Trading Success Blueprint, markets do not move in time in a linear fashion. That’s just a framework we imposed on ourselves to help us understand the markets. Markets tend to move between linear mode and chaotic mode all the time. Hence the near fractal nature of the markets. We have to learn to see the markets in chaotic patterns to trade in times like now so that we are not influence by the seemingly wild price actions everyday.
Projections for Coming Few Weeks
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