In a recent email on the latest market volatility he said;
Now, if you read – and believe – the mainstream’s rationale behind this move, let me offer you an alternative explanation. It has little to do with the ‘news’.
The conventional story was Mario Draghi’s announcement "that the ECB stood ready to do ‘whatever it takes’ to retain the euro". There were also some positive earnings reports out of the US (a lagging data point).
But remember on Wednesday, I noted that the market had completed a textbook five waves down to the 12,500 level on Tuesday – many hours before the above news emerged.
I stated then that I expected a rally from this level, and this is what occurred.
