What a sight to behold isn't it ? Here we stand at the top of the largest bear market rally, enthusiasm is high,risk is back in vogue and Vancouverites and Victorians are buying houses like crack addicts down on Hastings and Main. The question is how long can this last ?
From the fundemental angle the jury is split. Some are screaming from the tops to watch out for another crash, especially with October looming. On the other side we have the bulls who are kissing the earth each day this roared back to save their bacon and are preaching this is a new bull market. I do not want to see a crash, a correction yes, but not a crash. Corrections allow for second chances wether it is oil stocks,tech stocks or gold stocks. Crashes end that dream for all.
But then we have a real estate market in BC that never really corrected,it was a blip that was so short lived it won't even register in the history books. I cannot for the life of me figure out how people will cheap out over buying a pair of pants, or drive around for days pricing out how to save a few bucks on the big screen TV but will throw away tens if not hundreds of thousands of dollars in insane bidding wars on a house when they are so clearly overvalued. The word "disgustingly" overvalued comes into play here.
But the clincher is the attitude one receives who dare says a bad word about this subject, as if acting unpatriotic, as if they stomped on our flag or some treasonous act of the like. Most real estate owners do not get the word "overvaluation" but they will be in the next year as this schizophrenic behavior cannot continue. Bizarre is all I can say.
Psychology is a funny thing and the stock market shows me everyday that sooner or later the law of averages,the ebb and the flow, the ying and the yang all come home to roost,all that is needed is patience.
Therefore ,the point of my rant is that technically speaking,stocks seem poised for a correction here as well as with gold stocks. My charts tell me so,the SPY has peaked, gold is correcting in baby steps,oil is trading within a large converging triangle that should play out one way or the other within the next few weeks. As well the talking heads on CNBC are even divided,so that usually spells a small correction at the very least. I can live with that...just don't crash please. The last look over into The Abyss was not a pretty sight.
Still positive on my three picks, EMG I hope to see something soon,as well as COO,both a real deal. SPW is still a month away so be patient in the meantime if you like the junior oil plays. Still working on one gold/silver play in particular,it will be a beauty. Stay tuned and play safe !
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