THE CORRECTION JUST GOT STARTED

Across the board all major indices are diving, no exception. This is not a surprise, if you followed closely the behavior of the market. I have some arguments below why we have bad weeks forward.

1. The Nasdaq as a leading technology index didn’t perform well in the last weeks
2. The last Tuesday rally upon the Russian troops withdrawal was only a bullish trap
3. Last Friday tried the market goes up again to new highs but within an our the market turned around and since that time just has been falling – that was an another bullish trap.
4. The whole year the SP500 lost the momentum and couldn’t gain in the same pace as last year
5. The market went too much up and spent the whole 2013 without a double digit correction.
6. In the last two month the gold gained much – which showed some Risk Off mood so far.
7. On the emerging markets there were severe interest rates increases which slows down the whole world economy

All in all I am expecting a very bearish March and April in middle term we won’t see new highs. We have to experience the more than 10% drop very shortly.

The BFm Assets Team.