Markets and holidays

I am back in the B after some very refreshing holidays. Normally I try to use this time of the year for holidays since I often find it hard to take money out of the markets and the weather in my dear Sweden tends to be less encouraging why leaving for a while seems a good thing to do.

Just some thoughts on the markets. Below is the Stockholm OMXS30 over five years. We are in an accumulation zone that has many similarities with the one we saw in 2008.

A closeup of 2008 gives us:

Some major turning points are marked. Now let us look at the current chart pattern:

Marking the same turning points in this chart shows the similarities. Last time, in 2008, when we saw number 5 the big decline broke loose. About the same amount of time has elapsed this time as in 2008 from the first major decline had stopped and the recovery with the points 1-5 started. Remains to be seen is wheather the same thing will happen this time or if the markets are stronger now and will break out on the upside instead. In either case, if the markets will start to show weakness from here the picture from 2008 could be good to bear in mind..

  

How this story will end is something that the year of 2012 will give an answer to. I would like to thank all who have read this blog during the fall and wish you all some very happy holidays! 

to be continued..

 /C