Daily Murmur 03/11/10 | Gary Glover | Finance News Network

Daily Murmur 03/11/10

by Gary Glover

 The 60 year cycle is casting a strong shadow over our market at the moment.  Since the 2002 low we have basically mirrored the 1940's market and although it's only early in the next decade we seem to following the start of the 1950's so far.

We previously noted that after each large correction in history, the market bounced towards the 50% or 61.8% Fibonacci correction point and then tended to trade sideways for an extended period.  

So the chart below shows we are at this critical 61.8% level which we have already found resistance at recently.  Do we follow the norm after 80% of all large declines and range trade for the next couple of years or do we do the slow climb which mirrors the 60 year cycle which has been the most accurate forecast tool for the last 8 years and basically led us the way.




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Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.