THE DOT - if this turns orange or red be alert

Tuesday, June 8, 2010

Australia update - the rising stars turn is a harbinger of doom and gloom

The death cross in the AUD which by the way also applies for the ATX stockmarket, is a harbinger of bad things to come. The last time it happened back in Sep 2008 we had a crash and something similar will likely happen this time as well not only for Australia. We having looming death crosses all over the place and already plenty in force confirming that the bull campaign is offically over. the second half of 2010 will be a bear market with a rally in between but only as a counterwave from lower levels. Brazil looks pretty much the same way which points clearly to a substantial decrease in demand for commodities due to economic weakness - Bernanke is a disgrace to the world as Geithner and the almost save to say disaster for the Obama admin in the mid term elections will add to the negative momentum after they have spoiled the banksters who caused most of the trouble with the help of their corrupt friends from DC. markets will start to reflect that soon since the systematic problems have not been solved rather hidden.
In AUD terms the market has made a 38% retracement at current levels but we can expect to drop more towards 0.77 and 0.73 thereafter in the weeks ahead. from the .77 we might see a temp bounce though but sell strength is here the mantra as well.

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