Trying to make sense of the market is like trying to predict the weather--although there are not necessary corresponding seasons. There are cycles and patterns and moving averages. I've been following with pleasure the Market Week forecasts of Raymond Merriman. He provides both short-term and long-term analysis, and is more frequently than not, right on the money.
“But our focus for stock indices is on...May 5th. If this corrective decline ends sometime this week, we could see another leg up as the indices resume their “blow-off” pattern.
Right now it is grandeur and a littler hysteria, and it is not “common sense.” We do not live in a time when “common sense” rules the day. And in my opinion, we may very likely experience the opposite end of this dynamic—panic—in 2011.
Outstanding investment opportunities for the long-term: These will result from the social discontent that is already starting, and will inspire young people to find alternative ways to construct their collective life style in the next two decades. As mentioned before, watch the young people. Watch what they do, and what they rebel against. Watch the Establishment too, for what they will try to suppress in regards to “youth movements” will likely fail, as the “New World” and new ideas emerge.