The same AMT model 'high-probability' pattern in 2005 and
2006 has come along in 2007, and I will be following the exact
same strategy as I have done in the past, I will be moving
into 100% cash on all leverage positions probably next week,
and remain in cash until the next alignment some months later.
My long term trading stocks will remain held and I will add to
them once again in the latter part of the year.
We can see price following the AMT model from resistance
in the September-December level for a number of weeks @5468,
and then the breakout in December 2006.
Whenever there is a breakout of ‘time’, the expectation is for
price to move into the next timeframe that being the
January-March 2007 extremes.
Note: Alignment in 2006 came after the bounce from
the AMT model June lows and break back above the 3-month 50%
levels in August.
1st January 2007 report below...