China Bubble Drop Updated

In my previous article on SSEC falling 5% signalling the change in trend, we may get the sell signal soon. They made the high on 4 Aug and have dropped 12.2% since then. Its now sitting above the 200ma, but below 50ma. Once 200ma breaks, the odds are high that the bear market rally Wave B is over and it will be the first to roll over.

Thereafter, the rest of the markets should start to roll over one by one.

Robert Pretcher issued a bulletin end of February advising his clients to close short positions as the market was in extreme bearish mode (3% bulls) and was tightly compressed. Shorts will be slaughtered if they are not out of the way of the ferocious bear rallies. Bear market rallies had been known to be fierce and fast. This had happened.

Pretcher once again, just released his latest bulletin, abeit a week earlier in order to prepare his clients for what lies ahead. He advised the unwinding of long positions as we await for the nasty Wave C/Wave 3. In his 10 page report, he mentioned the likely disintegration of GE during the next wave down. Besides GE, hundreds more who had remained resilient during Wave A/Wave 1 will be impacted and weakened this time round.

He mentioned precious metals as well, forecasting a US$650 bottom for Gold. USD should start to rally for the next 3 years. Gold/Silver will take a hit as USD rallies. But they will be the buy of a century after the bear market bottomed (2012-2016).