Re: XAO Analysis
The 4300 area on the xao is the 1-1 ratio down with the initial wave down.
We have 50% of all time price at the 3450 area which is also conincidentally the same area as the tops of the 01-02. We cannot go down to this area, If we even get close to this area then when you realise how far below where we currently are it is it would mean that the major banking stocks and mining stocks etc would have to fall at least 60-80% of all time prices. Stocks like Suncorp could even fail and that cannot be allowed to happen
When you realise how much more we would go down to reach that area and then equate that to overseas markets, then kaboom.
The devestation on the economy would be the greatest equaling the great depression era.
The United states congress WILL offer a solution in the next few days becasue they HAVE TO. I personally expect us to false break below the 4300 area and then pull up in line with congress passing the required solution.
The 1987 market dropped 50%, however our banks ( which control the economy) hare allready experienced falls of 40-50%. Don't forget ANZ and westpac dropped just over 60% of their all times high in the crisis that followed.
But at the end of the day it is just talk, will I have the guts to go into the market at the 4300 area, we shall see.
The 4300 area on the xao is the 1-1 ratio down with the initial wave down.
We have 50% of all time price at the 3450 area which is also conincidentally the same area as the tops of the 01-02. We cannot go down to this area, If we even get close to this area then when you realise how far below where we currently are it is it would mean that the major banking stocks and mining stocks etc would have to fall at least 60-80% of all time prices. Stocks like Suncorp could even fail and that cannot be allowed to happen
When you realise how much more we would go down to reach that area and then equate that to overseas markets, then kaboom.
The devestation on the economy would be the greatest equaling the great depression era.
The United states congress WILL offer a solution in the next few days becasue they HAVE TO. I personally expect us to false break below the 4300 area and then pull up in line with congress passing the required solution.
The 1987 market dropped 50%, however our banks ( which control the economy) hare allready experienced falls of 40-50%. Don't forget ANZ and westpac dropped just over 60% of their all times high in the crisis that followed.
But at the end of the day it is just talk, will I have the guts to go into the market at the 4300 area, we shall see.