What a day! just when everything was set up for a sell off, we got a nice surprise from Japan. The Elliott Wave count is out at this point and the reversal signals that were clearly given yesterday by the market have been neutralized but having the 1157 peak breached and more importantly closing at 1160. The issue at hand is that now Central Banks around the world are going to flood their economies with liquidity and thus create inflation in the future. By doing this, profits are going up in nominal terms and commodities will continue to go up so the market is pricing this and NOT an economic recovery. Actually, we'll probably have a recession and we'll see the stock market go up just to keep up with inflation. So I think we're in for a "bull" market even if the economy remains in the dumps.
My strategy is to cover short positions at the retrace (whenever that happens) and go long on commodities, gold and stocks.
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