We have featured the UBS technical review three times on the site in the last couple of months. The record, thus far, has been stella in terms of timing and levels. The team have been on leave until this latest report from a couple of days ago.. (apologies on the late posting – i’ve marked the next issue in the diary so will be a little sharper next time to post up). Like all technical views take it with a pinch of salt but their record recently has been good.
The summary is: On the 30th of August they anticipated a little more strength from the index to sp500 1230. At this level they recommending selling. The index did indeed march on hitting 1230 (exactly) on the 31st and then rolled over from there – currently 1175. 1018 is the medium term target for UBS from this move which they term a cyclical bear market. For Gold they are forecasting 1950 to 2000 before a meaningful correction to h2 2012 but the secular bull to remain intact. They don’t forecast a breakout for silver topping out at 45 or so. Note Dax reached bear market status already losing nearly 30% from her high with the breakdowns in her industrial sector. VW trading on a pe of 4.4 or Man at 6.4 or Infineon 4.9, all on friday and many many more issues.
Rich
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