Anyone remember that hurricane in 1987?

This is an extract from my opening report on Wednesday 30th October 2012:

Whilst the US is lashed by the biggest storm in 70 years, markets over in this part of the globe seem to be celebrating but I’m sure these two events are not connected! However for now the rallies do count as the corrective ones I have been talking about and how many of you remember the hurricane over here in 1987 and what came next?…

The Dow closed on Friday at 13107 up 4 points with the spread betters now quoting it at 13077 (-30). US markets were closed yesterday and will apparently again be closed today so not much to add to my weekend video clip (http://www.johnpiper.info/johnpipervideolatest.wmv). A weak rally looks due.13000 remains key as per my previous reports and that rising wedge pattern – see chart at http://www.johnpiper.info/301012.gif  – remains convincing. As I said one scenario would be that this continued decline may well take out 13000 to form a low and we may then re-test the lower parameter – a failure to break back above would be strong confirmation of a major peak. Another scenario is that a break below 13000 would lead to “fast” action. I shy away somewhat from mentioning the parallel with the 1987 Crash which was preceded by a hurricane in the UK demolishing half the trees in Hyde Park (or so it seemed as I walked through the following day) but have now somehow managed to mention it twice! We remain 50% short of the NASDAQ via the ETF Proshares Trust Ultrashort QQQ

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