In LOTR:The Two Towers, King Theoden leads his people into Helms Deep to face Saruman's forces and to protect his people. On nightfall, Saruman's forces arrive and try to scale its walls with all kinds of siege devices. Then they try to break through its doors but had a hard time because of Legolas and Gimli (Hope). Finally they managed to break through using an explosive device(Failure). At that point Theoden's forces give up and despair (Capitulation). But as that happens Gandalf turns up with Erkenbrand and saves the day (Miraculous Turnaround)…
Hope - Failure - Capitulation - Miraculous Turnaround… Sound familiar?
Question is: where are we? I'm going to put my money on the premise that we are still in the midst of failure and that capitulation has not occurred yet. So I too will take any rise in the index as an opportunity to lighten my positions. But make no mistake. My interest in the market is growing stronger and not weaker.
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