Outlook March 14
Posted by Danny on March 14, 2011
Red Period is bringing the expected decline in most markets.
Even before the earthquake in Japan the market had already dropped below its recent uptrend line.
More red period days are coming up this week, so likely further weakness.
But probably some bottom is going to be formed between now and early next week.
There is a rare perigee full moon coming up for March 19, so I’ll postpone my buying till early next week.
Perigee full moon creates spring tides, and can also trigger earthquakes in areas that are ready for one.
This is because the extra gravitational pull of a perigee full moon can be the proverbial drop that makes the bucket flow over, and cause underground stress to be released.
Here is the current chart for S&P 500, with major support levels drawn in (click for larger image):
As for Japan, there will be no Chernobyl type disaster. This is probably a good opportunity to buy some Japanese stocks this week. That is also a good way to help the people there. Some of them will have to sell stocks (to rebuild their homes and economy), and if there are no buyers in the market they would take big losses. By stepping in as a buyer you help putting a floor under the prices.
Good luck to all, Danny