Friday, January 15, 2016

NO ONE IS IN CONTROL........

NO ONE IS IN CONTROL

When does a government or a central bank control the markets – NEVER! 

They may influence the markets with the various tools at their disposal but they can never ultimately reverse the trend at hand. The market will provide price discovery not the government or a Central Bank. The Market controls the Market….well human nature does and that is another topic all together. Just think "Herd Mentality" and you get the picture. Quick reminders of how governments and central banks trying to control the market are the Swiss Peg that recently broke, Greece and now the Chinese Markets. The end results are obvious.

The US Equity Markets are now commencing its "C Wave Correction". The August 2015 Panic was the A Wave. The C Wave will penetrate the lows of the A Wave. 



This correction will surprise many since it will be more severe than most will anticipate. Time is the most important factor, so we do not anticipate a bottom in US Equities until sometime in late Q3 – start of Q4 2016.

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