Agressive action leads to agressive reaction !!


FED and other central banks respond very agressively flooding system with paper money on unprecendented scale.  Stock markets around the world had one of the worst performance of their history (some of the losing >80% from the peak) . Government officials seem to realized that levels of debts are not managable in possible deflation scenario and they took the last bullet …TRYING TO INFLATE ECONOMY TO THE MAX. With so much money sitting on the sideline ( >$3 trillion in money market funds) probability of HUGE REACTION from stock market is VERY HIGH. Current technicals and seasonals point that this rally may continue at least into the summer.

If my calcs are ok and current trends remain intact  we will see stocks gaining another 20% from current levels into mid may.

Buying dips mode in stocks witn all MM rules intact 😉

“The trend is your frienduntil the end, when it bends” Ed Seykota

DAX – if market is able to break above 4100-4200 strong resistance area then most probably  to test 4700 trendline resitance into mid may.

dax

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