If the market lost half its value ($30 out of $60 trillion), then why should the S&P fall by 80-90% under 100 ???
Good analysis Mvic. Much more insightful than just quoting yet another analyst hack who got it wrong on the way up, and is getting it wrong here near an intermediate (at least) bottom.
So....all you fatalists who see the indices falling another 50%.....are you all loaded up on your shorts of the ES, YM, SPY, DIA, etc.? Or is this just all idle chit chat, like spectators at a fist fight who cheer on the fighters, hoping for blood, as long as it's not their own. I hope you've put your money where your mouths are, because your covering in the coming weeks will provide more fuel to the coming bull run.
Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done. The deflationary credit contraction begins http://elitetrader.com/vb/showthread.php?s=&threadid=149998
Something tells me 99.9% of the "sky is falling" crowd on ET doesn't have the balls to purchase puts or short equities at these levels. They sure do like to cut and paste doom and gloom articles and whine like school girls, though.
Going short in this market with all the stimulus and unlimited money printing seems insane. The fact is is that we are in a bear market. It will go where it goes. Trade with the trend.
Landis still thinks the economy is doing fine. He is the perma bull thinking the bottom is in and the end of this credit crisis over since yesterday. He still has no idea the magtitude of this crisis going forward.
If you read my past posts you would understand that this market is years and years away from any kind of new bull market. I didn't say that a new bull market = consant to new lows, what I did say is that the market will be range bound for at least 5 years, maybe even a decade or more. Forget about the phrase bull market for now.