Dow (17,898)
Dow dropped 140 points (-0.78%) on Friday to close at 17,898 level.
The main question now is whether the current correction is the major wave (6), a 12% correction to around 16,117 level,
Or it is a mega wave 2 with a minimum correction of 42% to 10,655 level and a maximum correction of 64%, which is a 100% retracement of mega wave 1, to its starting point at 6,547 level.
This is my interpretation for Dow at this moment and I would like to
emphasize that there is always this possibility that my technical
interpretation could be wrong.
It is always good to have a look at what the Gurus have said once in a while.
Marc Faber : Stocks are about to fall 40% at least.
30th April, 2015 -
"For the last two years, I have been thinking that U.S. stocks are due for a correction ........"
"But I always say a bubble is a bubble, and if there is no correction,
the market will go up and one day it will go down, big time."
"The market is in a position where it's not just going to be a 10%
correction. Maybe it first goes up a bit further, but when it comes, it
will be 30% or 40% minimum."
Despite his massively bearish call, Faber said he is "not short the
market yet," since he doesn't know how high stocks could go in the
interim.
Robert Prechter : Stock Market at High Risk of Collapse.
10th June, 2015 -
"If the cycle is still operating, the stock market is at high risk of a sharp collapse,"
"Near-term, we are prepared to see the Dow make one more high. But it doesn't have to happen."
Peter Schiff : The Real Earthquake is about to hit.
30th December 2014 -
Quote from Wall Street Daily, "Don't try to praise bestselling author,
Peter Schiff, for accurately predicting the 2008/2009 financial crisis.
That is, because in his opinion, that financial crisis wasn't the REAL
crash ....... it was only a tremor before the big one hit."
Nouriel Roubini : 'Liquidity time bomb' will eventually 'Trigger a bust and a collapse'.
1st June, 2015 -
"As more investors pile into overvalued, increasingly illiquid assets,
the risk of a long-term crash increases. Market illiquidity will
eventually trigger a bust and collapse."
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