Thursday, June 15, 2006

 

Rebound ...

The markets are generally 20% off the peak. My instinct told me that things are now with great discount. A rebound rally with significant scope is comming. So far, there is no theory on newspaper to explain the market behaviour recently. Most people view this as a normal market correction. Why liquidity suddenly disappear ? How come the markets all go in phase suddenly ? It's sure a critical phenomenon in physical term. The Fed rate increases is just a trigger. The story should be in the shape of the underlying configuration potential surface. I think the market won't go too low. Yet, before the coorelation between markets are restored, a risk for a big crash is still there.

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