The S&P 500 finished higher in two of the holiday shorted week’s four sessions and posted a 0.64% gain. The index has finished higher in eight of the past 12 sessions. The index stalled near the lower level resistance of the 100 L early in the week until breaking higher Friday. Friday’s push higher neared likely resistance in the upper level of the 100 L.
Friday’s move higher was in response to news of an agreement in principle to allow a four month extension to Greece’s financial rescue. Greece had sought a six month extension in hopes to negotiate longer term debt relief with its creditors, but many of the Euro finance ministers insisted on a shorter time period. Provided finance ministers agree to a list of reforms to be supplied by Greece in the beginning of the week, they could ratify the agreement by teleconference on Tuesday. Even after this hurdle is cleared the deal would still need to be unanimously ratified by Euro parliaments.
The Major Stock Market Indexes
The index charts of the Dow Jones Industrial Average, S&P 500, NASDAQ, New York Stock Exchange and Russell 2000 stalled in climbs as they neared likely resistances early in the week. The week ended with a possible bad finger pattern in several charts as many of the indexes broke strongly higher on Friday. All broke above a resistance in these moves, although most remain within resistance levels or within the influence range of the broken resistance.
A bad finger pattern occurs when there is a spike higher after it appears a top is forming or near a likely top and these moves are often caused by news events. When a failure in this move higher is seen, it leaves the spike protruding above a rounding pattern lower, leaving the impression of a middle finger sticking up in the top.
The NASDAQ chart continued to boast the most bullish climb as it finished all four sessions higher. It posted small gains in the first three sessions as it struggled with resistance near 4900, but it appeared to push above that resistance in Friday’s session. Although it is not yet at all-time highs, it continued to break to new 52 week highs during the week.
The Russell 2000 appeared to break above the 100 L upper resistance at 1225 on Friday, although it remains within its influence. It spent the first three sessions of the week bumping into this resistance before falling to the lowest level of the week Friday. It rebounded from that low to finish at a record high and a little above the 100 L resistance.
The S&P 500 spent three days of the past week trying to maintain a move above 2000 and but lost ground in two sessions after Tuesday’s finish above it. Although highs only retreated slightly, the chart gave the appearance that it might begin to round lower from this top. Friday fell to the weekly low before it rebounded in a possible bad finger pattern that jumped to a record high above the 100 L centerline resistance. The S&P 500 remained within the 100 L upper level resistance and finished near but below likely resistance in the upper half of this resistance.
The Dow Jones inched higher Tuesday, then appeared to begin to round off earlier highs in the following two sessions. Friday fell to a lower low that was in step with the earlier retreats, before putting up its possible bad finger in a strong move higher. The Dow broke above previous highs in this jump higher and finished the week at a record high, but has not moved above resistance bandwidths normally seen in indexes trading above 10,000 at the 1000 levels.
The New York Stock exchange pushed slightly higher in the first two sessions, but fell on Thursday erasing the week’s gains to that point. Daily lows also began to give the appearance of a rounding top before Friday spiked higher from the week’s low in a possible bad finger pattern. The NYSE broke slightly above the resistance at the three previous tops in this move higher, but is still within this resistance’s influence and like the Dow, below resistance bandwidths normally seen in indexes near 1000 levels.
The resistance breaks on Friday were bullish as the indexes pushed to new all-time or 52 week highs, but several did so in possible bad finger patterns. Most of the indexes appeared to be rounding at tops before the good news spike. The indexes and most stocks are overbought and although all broke a previous resistance, most indexes did not break free of these resistance levels. The indices and many stocks are fully overbought, so it seems possible the indexes could retreat in the week ahead.
The US Treasury Charts
The 20 year US Treasury Bond split the week with two gains and two losses in a lower finish for the week. The 20 year saw lows flatten near potential support during the past week. It seems possible the 20 year could cycle higher from this level, but it still seems possible it could maintain in its overall retreat. Overall the current move continues to look bearish in the 20 year chart.
Long term treasury charts continued to show bearishness. These charts were bullish for stocks in the past week.
The interest rate on the 10 year US Treasury Note pushed strongly higher on Tuesday, and then slipped from these highs but finished the week with a gain. Wednesday finished with the only loss of the week but Thursday and Friday’s higher finishes fell short of Tuesday’s close and the daily highs flattened below this level. The chart finished the week near a bullish cross of the 13 EMA above the 50 EMA. The Ten Year is fully overbought and it seems possible it could begin to trend higher off recent extreme lows, but it still seems possible it could cycle lower first.
Gold started with a trend higher Sunday night that reached about 1234 in Hong Kong. It then trended shallowly lower to finish the night a little over 1232.
Monday began trading flatly near 1232 until it pushed higher to about 1236 late in the Hong Kong session. It trended lower in bounces off that high to about 1230 near the London close. It bounced a little higher before trading ceased due to the American market’s Presidents Day holiday, but continued to bounce higher after the Sydney open. The trend turned lower again near 1233 after the Hong Kong open and finished the night in the day’s sharpest slide to a little above 1227.
The drop continued but became shallower Tuesday morning and reached 1220 just before the New York open. It bounced to 1225 near mid-morning in New York, but gold retreated steeply from this bounce to about 1204. It again reversed and rebounded slowly to about 1210 in Sydney only to slipped back to about 1206 in Hong Kong before nosing up into the day’s finish above 1208.
Wednesday gold traded between a high of about 1211 in Hong Kong and a low of 1206 in London before pushing back to about 1210 in New York. It trended slowly lower before falling sharply to 1198 before noon in New York, then trended slowly higher before breaking sharply higher in the early evening in New York to about 1212. Gold trended higher from there to about 1217 in Hong Kong, but bent a little lower to finish the night above 1215.
Thursday saw gold bounce mostly higher to about 1223 before the New York open, but it turned sharply lower again shortly after that open to 1208. Gold bounced briefly higher before continuing in a shallow downtrend to 1206. It bumped up to and held closely to 1208 until it began to trend weakly higher in Sydney to about 1210 in early in Hong Kong trading. It cupped lower finishing the night a little off the low and a little shy of 1208.
Friday trended closely to Thursday’s finish in Hong Kong before starting to break lower just before the London open. The fall took gold to about 1203 by the Hong Kong close. It traded within that low and 1205 until breaking higher before the New York open reaching about 1215 by that open. It slipped a little off that high and retested it before beginning to bounce lower. The retreat took gold to about 1199 before it trended higher into the New York Spot close of 1203.90, and quite a bit lower than the previous week’s New York Spot close of 1229.20.
Gold has retreated in each of the past four weeks based on the New York Spot close. Although gold rebounded from a drop below it earlier, it appears a slip below potential support near 1990 could leave gold in a position that it could begin to trend lower from.
The S&P 500 Constituent Charts
Most of the constituents that were in moves higher have reached or have begun to fall from fully overbought conditions. Many have flattened at resistance or finished lower than a recent high after reaching resistance giving the impression that many of these constituents could be beginning turns lower.
Many of the constituents not fully overbought appear to have already begun to cycle lower from fully overbought conditions, but many others that did not reach fully overbought have reached resistance that appears to be overcoming their moves higher. Many of these stocks have trended lower from this resistance.
Many of the stocks that are oversold have been maintaining trends below the 13 EMA and few look near likely support, making it seem likely these trends could continue lower. Others have rebounded, but many of these rebounds appear to have been turned lower at resistances.
Many of the indicator stocks across sectors that had broken lower earlier continued to slip further. Some rebounded briefly before turning lower again. Some that had been in cycles higher earlier have since turned lower and some have reached the lowest levels they have seen in several months. Those that moved to new highs in the previous week have since flattened or edged only slightly higher. Overall the indicator stocks appear to be maintaining within trends lower, although many saw small gains for the week.
Indicator stocks often begin moves lower prior to the overall market. These moves lower often begin up to six weeks prior to an overall move lower on the index. Many of these stocks appeared to be in normal retraces from cycle highs when they broke substantially lower and due to these earlier trends off highs several have reached this time frame and many more are nearing this time frame.
Since the beginning of the year several stocks that were in long trends higher have flattened in these runs, several have begun to trade in choppy up and down moves near previous highs and several turned substantially lower. Some appeared to renew runs higher, but these moves have been short term to this point. Many that appeared to begin moves higher again earlier failed to maintain these trends and instead continued in choppy patterns. Overall fewer constituents are maintaining long trends higher and this is consistent with a tip over pattern.
Much of the move higher in the recent rebound was the result of jagged up moves in stocks that have been trading in choppy patterns and many large gaps higher. These gaps continued in the past week. Some of these gaps have already filled, a couple fully covered a large gap higher or lower in the next trading day, but many of these gaps remain open.
Several constituents are in wedge patterns that are biased lower. It seemed likely many of these wedge patterns could break during the past week but few did and most maintain within these patterns. A few others experienced small moves higher or lower and returned to pattern and this appeared to extend the wedge. The past week also saw an increase in the numbers that appear to be in upward biased wedge patterns, but many of these constituents are overbought. Wedge patterns do not allows break in the direction of bias.
Some of the constituents that had rebounded from 52 week lows earlier fell and finished below the lower trend line in these runs off lows. These stocks are still quite far from oversold making a continued fall seem possible. It seems possible others in rebounds from lows could be headed for the same break below the lower trend line. Although they established minor support levels in this run higher, the first major support could be seen at or below the 52 week low they rebounded from, as several broke prior support before rebounding.
Overall the rebound leaves the impression it lacks broad based constituent support. More constituents gapped higher in the past week increasing the number of holes to be filled in future retreats. The index and many of the constituents are fully overbought. Few of those that are not fully overbought look likely to move much higher or had already begun to cycle lower from overbought conditions. It seems possible the index could begin to retreat in the week ahead.
The indicators featured below are not always correct, but they have been many times. Being so they are worth reading about and taking note of.
The +2% H, -2% H, -/(+)9 Day, -/+ 9 Day, and 100 L indicators are currently active. A 90 E indicator will activate on Monday. See a more detailed description of most of the indicators developed through research and featured in these articles here.
The +2% H and –2% H indicators did not provide a correct indication in the past week. An increase in the numbers of wedge formations seen in constituent charts makes volatile conditions seem possible. Wedge breaks often provide a larger than normal daily price move and if many of these wedge formations break concurrently and in the same direction, it could provide a volatile daily price move. Although many of these wedges are biased in opposite directions, wedge formations do not always break in the direction of bias.
The -/(+)9 Day indicator that became active on Oct 30, 2014 and has performed as follows to this point in the standard format: highest close / lowest close / last close.
+5.80% / -1.10% / +5.80%
A 90 E indicator will become active Monday due to the -/(+)9 Day indicator that became active on Oct 30, 2014 entering its expiration period. The 9 Day indicator is a 90 trading day indicator. All 90 trading day indicators have expiration periods that begin 13 days prior to the expiration date, and last 13 trading days past the expiration date, giving a 90 E indicator a 27 trading day active period.
However this instance of the 90 E will be active for an extended period. The normal 27 trading day expiration period overlaps with an upcoming expiration period for the -/+ 9 Day indicator that became active on Nov 20, 2014. As a result the index will be within the influence of a 90 E indicator for 42 consecutive trading days.
As can be seen during past instances of this indicators presence, there are several traits common to this indicator. The 90 E indicator is often present during periods with volatile daily market moves, with volatile daily moves being those sessions on the S&P 500 with a 2% or greater price change based on closing prices. It is also often present during periods with excessive numbers of significant market price direction changes, with a significant price direction change being a change of price from high to low of three percent or greater based on closing prices. It also has a history of being active during or very near major market lows or major market highs. This indicator also often sees the above conditions during trading days around the fringe of its active period, with fringe considered within a few days before or after its active period.
This indicator is often bearish, but not always so, it is occasionally seen during bullish market conditions. The index is currently moving bullishly higher, making it seem possible this indicator could be bullish in this appearance. Market conditions present prior to this indicator’s active period could be misleading as the stock market is often performing bullishly when this indicator becomes active, before turning bearish during its presence.
Most supporting indicators continue to give bearish readings. Many chart formations suggest a bearish period could be forthcoming. Downward tensions on the index appear to be much higher than normal. The recent price run had an abundance of opening gaps higher, that are likely to fill at some point. Many of these gaps began at or near the stock’s cycle low, indicating a great deal of the recent bullish run could be erased just covering these gaps. Many of these stocks are reaching resistance that appears to be turning them lower or has already turned them lower. It therefore seems possible the 90 E could be bearish in this instance.
The -/+ 9 Day indicator that became active on Nov 20, 2014 and has performed as follows to this point in the standard format: highest close / lowest close / last close.
+2.80% / -3.90% / +2.80%
The S&P 500 opened Tuesday slightly lower at 2096.47 and reached a low of 2089.80 before pushing to a high of 2101.30 and slipping slightly into the index’s first finish above 2100 and a gain at 2100.34. Wednesday started lower at 2099.16 and fell to a low of 2092.15 before moving to a high of 2100.23 and slipping a little to finish with a loss at 2099.68. Thursday opened slightly lower at 2099.25 and fell to a low of 2090.79 and reached a high of 2102.13 before closing with a loss at 2097.45. Friday started the session slightly higher at 2097.65, but fell to a low of 2085.44 before rebounding strongly to a record high of 2110.61 and finishing at a record close of 2110.30.
Tuesday found support in its retreat above the lower level of likely resistance from 2085 to 2100 in the lower half of the 100 L at 2100, but also found resistance near but above the upper likely resistance and finished slightly above the resistance level. Wednesday found support higher, but found resistance lower and finished below the likely upper resistance. Thursday fell deeper before finding support, but pushed higher above resistance before finishing with a loss. Friday fell very near the lower likely resistance before rebounding and pushing and finishing well above the upper likely resistance in the lower half of the 100 L, and into the influence but short of likely resistance from 2112 to 2125 in the upper half of the of the 100 L.
The index left no open gaps in the past week and did not cover any previously opened gaps. For the first three days the index appeared to be failing near the 2100 center line, before Friday pushed bullishly past it. Friday’s rebound was from a bullish support level near likely resistance at 2085 and rebounded above the lower half of the 100 L resistance, but also found resistance a fair distance short of the 2112 likely resistance in the upper half of the 100 L.
The index moved above the lower half resistance of the 100 L and within the influence range of likely resistance between 2112 and 2125 in the upper half of the 100 L. The two significant pullbacks within the lower half of the 100 L at 2100 probably softened likely resistance in the upper half of the 100 L; however the strength of resistances in the 2065 to 2070 MRL and the lower half of the 100 L were stronger than anticipated and it seems possible the upper half resistance could react similarly. Friday’s bullish move higher saw resistance prior to the likely resistance in the upper half of the 100 L, making it seem possible the resistance at this level could also be stronger than anticipated.
Average daily volume levels decreased 8.58% below those in the previous week. The week’s lowest volume was seen in Friday’s move higher and the highest volume was seen in Thursday’s run higher. The week over week difference in the five day volume variance increase 1.24% and finished the week at 8.63%. Volume levels continued to fall near normal bullish levels and the low five day volume variances indicated low volatility.
Apple (AAPL) announced plans to build a car in the past week. Although investors seemed to eat this news up, it does not seem like a great idea. Few new car ventures last for very long and many had leaders that were in the industry for many years before embarking on this venture, like Delorean. Even some that were once extremely popular died, like Saturn. It is estimated there have been over 3000 automobile manufacturers worldwide since the automobile’s invention, but way less than 100 are still in business today.
Designing, tooling and manufacturing a car is very expensive and margins are very low. Liability is high, and recalls can be devastatingly expensive. Down cycles in the industry can also be very cumbersome to earnings for several years until the economy recovers. Many large conglomerates have divested their stakes in automobile manufacturing or automotive parts suppliers for this very reason.
Apple might make the best car ever made, but completion is cut throat and chances seem slim it will last very long even if they do. Chances are great that it will hurt earnings margins and losses like those seen in automotive down cycles are not something Apple investors are used to seeing. Investor support of this venture could turn very rocky into these downturns.
From an investor’s standpoint, it would seem the money spent on developing and manufacturing this new car would probably be better spent with a dividend increase. The list of multibillion dollar follies by companies with large cash hoards that felt they needed to improve the company with a new product they had no expertise in or by buying another company is very long. Some take years to recover from these downfalls. Some sold these ventures at a fraction of their value into these slides or completely wrote them off as losses extending the slide.
A new 90 E indicator will become active on Monday. Although the current market direct appears bullish, it seems possible this indicator could be bearish in this instance.
Although earnings have beaten projections for the quarter at a higher than average rate, earnings have fallen substantially across a very large portion of the index. Some continue to post strong earnings and earnings growth, but most of these stocks already appear priced far forward of these potential earnings.
The ECB and Greece appeared to come to a short term agreement in the past week potentially starving off a debt default in the near term. It does not sound like the agreement was favorable to Greece. Unfortunately it appears the leaders in the Euro Zone continue to make matters worse in Greece while raking large interest payments in on these loans. The ECB plans for the stimulus announced earlier still does not appear to include the countries that need this help the most. Yet again the economic ignorance of its leaders makes it looks likely it will allow many of the Euro economies to continue to deteriorate.
Safe haven assets continued sell offs in the past week, but Treasuries may be turning higher off support levels. Most stocks have reached fully overbought conditions or have begun a retreat from these levels.
Downward tensions on the index appear larger than normal. A fairly large number of constituents have continued to fall into the recent rebound due to these tensions. Others have rebounded, but have not broken from trends that make a further retreat in an overall turn lower seem likely. Many are still quite far above likely support levels in these falls.
Recent runs higher appeared to have a higher than normal number of opening gaps higher. It is likely these gaps will eventually be filled. Many of these gaps were seen very close to or off the bottom of recent runs higher. A great deal of the recent run could be erased just covering these gaps.
The recent rebound appeared to lack the normal levels of constituent participation. Many stocks moved higher, but many maintained overall downtrends in these rebounds. The result was that many stocks were not pushing higher, only trending to and then falling off the upper trend line of a downtrend.
Recent rebounds from lows in many stocks could prove to be too early. Some of the stocks in rebounds from 52 week lows broke and finished below the lower trend line in recent runs higher. These stocks are still quite far from oversold so additional downside seems possible. It seems possible other stocks that are moving lower could also breach the lower trend line in these falls. Many of these stocks are very expensive based on likely future earnings. Although these stocks have established minor support levels, the first major support level is not likely to be found before they return to or break to new 52 week lows.
The index remains in a potentially bearish time frame. Several large retreats on the index have been seen during the first quarter.
The index rebounded from October lows just as a tip over pattern was completing. A tip over pattern is a collection of index and constituent charts that indicate a large drop on the index is likely. This type of pattern is evident prior to past crashes and many large downturns on the index. These patterns also often coincide closely with runs above the upper trend line on the index. Rebounds from the initial drop in tip over patterns are common. Some were quick spikes higher and others have lasted up to a few months.
Although the index has yet to fall as expected, stocks in runs higher that were once fixtures in carrying the index higher continue to falter and the tip over pattern continues to develop. Fewer stocks are left in these runs higher, and many of them that continue are running far ahead of likely future earnings. This continues to point to a potentially large downturn.
The index has again fallen to a significant level from the run above the upper trend line established early in the rebound off crash lows. Past breaks above the upper trend line on the S&P 500 have all produced large retreats that reach the lower trend line or lower support line at some point. It is not uncommon for the index to see one or more significant drops before seeing a retreat to one of the two trend lines. The index has recovered from six significant retreats since initially breaking above the upper trend line on Dec 26, 2013.
If the index continues in past patterns, runs above the upper trend line have always fallen back to or below the lower trend line or lower support line within two years. The only exceptions were during trend changes, but these trend changes also occurred during a rebound from a drop to one of these two lines. The index returned to the prior trend from the last drop to one of these trend lines, so it does not appear to be in a trend change from that rebound. It therefore seems likely a break to the lower trend line or lower support line could happen within the next 10 months. Chart formations make it seem fairly likely it could occur sooner rather than later.
Approximate levels of the lower trend line at the beginning of this month and for the upcoming two months are as follows: On Feb 2 it was at about 1777. On March 2 it will be at about 1789. On April 6 it will at about 1805.
Approximate levels of the lower support line at the beginning of this month and for the upcoming two months are as follows: On Feb 2 it was at about 1630. On March 2 it will be at about 1643. On April 6 it will be at about 1659.
It seems likely the breaks lower seen in commodity prices could continue for some time to come. Although the stock market currently perceives it as such, a rebound in crude prices is not a bullish indication.
Ultimately the direction that the stock market takes from here could be influenced by news events. It seems possible some of these news events could involve normal market conditions due to the time of year. It also seems possible current conditions could cause past problems to resurface.
When the S&P 500 broke above 2000 it entered a level research suggests could contain a large pullback. Data evaluations make it appear resistances met between 2000 and about 2140 could have the potential to cause a large drop, possibly reaching crash proportions.
The downturn at the 100 L at 2000 did not reach the levels that could have relieved the index of a possible deeper drop. It instead completed a tip over pattern that makes a deeper drop seem very likely.
The index moved above the lower half resistance of the 100 L and within the influence range of likely resistance between 2112 and 2125 in the upper half of the 100 L. The two significant pullbacks within the lower half of the 100 L at 2100 probably softened likely resistance in the upper half of the 100 L; however the strength of resistances in the 2065 to 2070 MRL and the lower half of the 100 L were stronger than anticipated and it seems possible the upper half resistance could react similarly. Friday’s bullish move higher fell short of likely resistance in the upper half of the 100 L, making it seem possible the resistance at this level could also be stronger than anticipated.
Chart formations tend to make a fall in excess of 10% seem possible. Past chart formations seen during large retreats on the index closely match those that are present now. It continues to seem fairly likely a significant fall could reach the lower trend or lower support line with a move lower probably staying within the 10% to 20% range. If a drop to crash potential is seen, it probably does not exceed 24% by much, but could possibly reach 35% if many of the constituents fall to lower support levels. Research suggested if a crash were to occur from within resistances in the 2000 to 2140 range, it probably finds bullish support somewhere near the two previous tops in 2000 and 2007. The index’s highest close finished slightly greater than 25% above the 2007 high.
The next likely resistance level above the 100 L at 2100 could be seen at the 2140 to 2160 MRL. This resistance has the potential to cause a significant pullback. The potential for these drops could change drastically depending upon the outcome at the lower resistance and being so no drop projections have been made for this resistance at this time.
There continues to be reasons to be bullish at the current time; however there are reasons to be somewhat bearish too. The index also continues to show patterns that are common prior to large retreats. If a large pullback is seen on the index, it could be prudent to increase stock holdings into this drop.
If gold should rebound into a large sell off in stocks, it could provide the best remaining opportunity to take profits in gold holdings. If stocks rebound strongly from this downturn as it seems fairly likely they could, it seems possible gold could shatter support at about 1190 in this retreat and might not find solid support again until near 700. A drop directly to this level seems unlikely and gold probably finds temporary support in the 900 to 1000 range before slipping lower. Ultimately, even the support at 700 is likely to fail with gold probably returning to the 200 to 300 level at some point in the future.
These data evaluations do not mean a crash is certain within the 2000 to 2140 range. The data evaluations only identified this level as one with a high potential to cause a large drop, possible reaching the 25% to 35% range; although a fall seen low in this range might not reach these levels. This range also holds most of the specifications identified in the first crashes of a market entering into a secular bull. Many chart formations that occur near large pullbacks became apparent as the index neared this resistance.
Please note there is no established resistance in the MRL levels before the index has reached these levels. Several instances have proven to hold resistance once reached; however MRL levels that the index has not yet reached are only the most likely levels that resistance will be seen based on research. Back tests of the data used to project these resistance levels work well, but they are not always exact, and these resistances could react sooner or later than expected, it is also possible the resistance will not be seen at all.
Data provided for the S&P 500 was derived from the historical daily data tables, similar data can be found at AOL Finance. Stock and Treasury charts used for analysis and commentary were provided by StockCharts.com or from those that Ron created from his data. Gold charts used for analysis and commentary were provided by Kitco.
Have a great day trading.
Disclosure: Ron has no investments in AAPL. Ron is currently about 57% invested long in stocks in his trading accounts and his rounded investment level was unchanged from the past week. He made no trades during the past week but his unrounded investment level was reduced by dividend payments. Ron feels he is somewhat overbought given current market conditions and may sell into continued market strength. At this time he is likely to make only short term investments. He delayed scheduled dividend reinvestments for the past week. Ron will receive dividend payments from eight issues in the coming week and 13 in the following week. If no further investment changes are made during this timeframe, these dividend payments would not change his rounded investment level.
Disclaimer: The information provided in the Stock Market Preview is Ron’s perception of the current conditions and what he thinks is the most probable outcome based on the current conditions, the data collected and extensive research he has done into this data along with other variables. It is intended to provoke thought of the possible market direction in his readers, not foretell the future. Ron does not claim to know what the stock market will do. If the stock market performs as expected, it only means he is applying the stock market history to the current conditions correctly. His perception of the data is not always correct.
This article is intended to provoke thought about investment possibilities. Acting on the information provided is at your own risk. You are urged to do your own research, and where appropriate, seek professional investment advice before acting on any information contained in these articles.