Time To Do Something With Your Investments, Markets Nearing Critical Point.

It is now time to rebalance your portfolio or add to your positions if you are a long-term buy and hold investor. Otherwise, if you are more active in your investments and looking for that extra "Alpha", or gain, then it may be time to liquidate your more volatile/risky investments and wait for some direction, maybe even open a hedged position.

Why do we say this?

Our analysis and research puts us in the view that a short-medium term correction and consolidation period is nearly imminent in the markets.

Here is a post that I made on another financial website regarding where the market may be headed on the downside:

On Oct 03 12:41 AM AlphaKing wrote:

Here we are now 3% lower than where I gave a warning signal up at
9850. As suggested in my initial warning comment I believe we still
have at least another 1-2% move lower in the short-term, and then
there is some strong support. If we get a break below 9300-9350 level
it should confirm an even stronger move lower, which is moderately
likely due to the bearish pattern formation with which a solid break
below should confirm. Break below these levels should then bring at
least another 5% drop, but I believe closer to 12-15%
fall technically from there in the medium term.

Today, I have just updated this post on that financial website with:

I am still standing by this scenario developing and a much larger market correction lower if support levels do not hold, although the support levels have of course moved up.

The support levels below that were mentioned (in other post) as 9300-9350 are now at 9650 level. A solid break below that level should bring the markets close to 6-8% lower. Today it seems as if they are trying to test those support levels. For all trend followers and longer term conservative investors now may be a good time to enter long, or add to your position.


Due to major technical levels approaching in the markets, and the current sentiment, I believe that you should be aware of a break of the support levels mentioned above which I believe will be a strong indicator of a larger move lower (near 8% lower).

You should be prepared for next week as it will be the determinant of further, sustained direction and where you will want to put your money in the medium term possibly to capture some gains from the consolidative period that is likely to come.