TSE May 21 2010, so where are we?

tse may 21 2010

It is always risky to be too precise with regard to making predictions using EW, nevertheless I will make a wild guess as to where we are.

I always expect the TSE to do a 1000 points, all though is supposedly metric there are still too many vestiges of the old colonial days but, as far as the TSE goes the 1000 point mark seems to fascinate the market over and over again. So we did that at the open. However I would not expect much more than a feeble bounce which may or may not already have run its course. By my estimation we are probable in wave 4 of 3 of w 3 of Wave 3 of wave 1 of3 of C.

Given that Wave 1 of 1 of C was 600 points or so Wave 3 may well run 2.6X that which would be about 1600 points, then 4 and 5 still have to occur to finish wave 1 of C. C itself always has to be 5 waves so that can easily get you to lows that are (substantially) lower than the lows set at March 2008. 

An interesting article appeared in the  John Maulding letter written by Niel Jensen of Absolute returns.  In it he explains why the commodity game is a con job. It is copywrited so I cannot share it here but you can find it on the internet at info@arpllp.com  .  Combine that with a little stockpiling in China and you end with a pretty toxic brew.

Stay with the HXD.