Below is our updated wave chart of the Dow Jones Industrial Average. We get the sense that if we don’t get
the “bounce” higher soon, this market can fall hard i.e. major capitulation from the newly anointed bulls. By our
count we are entering the most powerful leg of the down wave. We are assuming the bear market rally to 13,339 on
May 1st is done! [Labeled 2 of 3] We want to remain long-term short equities and most risk asset markets as the
global macro is playing out as we anticipated.
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