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Tuesday, April 3, 2012

Elliott Wave Update ~ 3 April 2012

The best wave count at the moment may be a Minute [iv] ascending triangle using the Wilshire5000 for form.

One comment I keep hearing is "when will retail get back into stocks?"  This infers of course that retail is sitting out of risk assets altogether and shunning everything. This is simply not true. There are still substantial inflows going into bonds.  This is where your retail resides.  They are not in money markets. Money market flow is near a bearish (for the market) extreme.

So the answer is retail investors are in the market, they just think they are being safe.  Of course its the public who is buying the top of the 30 year bond bull market.  Things never change.

So don't get all hyped up about when retail is going to take "risk" again. They already are taking the biggest risk of all - thinking the bond market is a "safe" haven and that the Ponzi scheme will go on forever.

Money market assets presented below via Sentiment Trader:

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