Friday, May 8, 2009

Closure On The Confession

On March 6, I made a confession. This morning I brought most of the wild speculation to a close. After reviewing the March 6 post, I realized that I did not document the Deere purchase. The reason for that buy was aligned with the forecast for hyper-inflation and growth in localized agriculture, or as one analyst put it "gold, guns, and groceries".

It was a miraculous run, but the slope of the sand pile just looks too steep to me. My mentors at Elliott Wave International believe that we're in wave 2 of 5 "ups" with a potential peak at 10,000 for the DJIA. If they're correct, then another buying opportunity should exist after the wave 2 correction. It has to be close. The hype and euphoria has quickly returned. And then after that? The Great Head Fake.....more on that later.

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