Thursday, March 05, 2009

Intermarket Analysis: Bottom forming?

Based on John Murphy's order on the world; the order of a bottom is yields-stocks-commodities. It would appear reasonable to assume a bottom is in place for treasury yields as of December 2008. It usually takes another year for a bottom in the stock market.


Painful as the current decline is the suggestion is that whatever low is put in place over the next few weeks won't be the absolute low. However, it may mark a retest low for a rally-and-decline for 2009 (fitting an earlier suggestion of mine for a possible sideways market in 2009).

Commodities generally take another 9 months from the stock market bottom; so it could be mid-to-late 2010 before a true bottom is in place for commodities.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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