Given how gamed the markets have been lately, would you be surprised if today's action was not more of the same? I am uncomfortable staying short after the close. Disclosure: closed out long SDS, long OTM SP puts
He did it see it coming and everyone thought he was a nut. I have supported his views for ages here on ET, and been reamed for it.
i disagree. i think today. this is such a classic text book puke. im as bearish as anybody and have been for years. in going long now. this is the time boys. but only go in small. expect more downside and levels that you never think could be hit. the get me out phone calls will be huge today.
Dow hit into the 7800 range as I said earlier then rebounded. I am going to wait for it to come back down and make a double bottom formation before I decide to do anything other than day trade. No long term trades until there is some better confirmation. (but the fib levels did point out the target rebound area pretty close)
I sure did. Search my posts. 50% of the DOW high and then a new bull market, until the next cycle. If the government continues meddling in the free market, it will go lower.
But what if it dives straight through 7000...and 7000 will become the new resistance top. In 2002 the base economy was very strong besides the dotcom collapse, now it's slowly disintegrating. Banks are in shambles, people spent their principal treating their homes as atms. People are curbing their spending. Paying off their credit card debt or going bankrupt, those who cannot. 80% of the economy is consumer spending. Take most of that 80% off and where are we? We'll be lucky if Dow stops at 4000. China, Japan and Russia will buy the whole of US using their forex reserves alone, without debt. I used to think people envisioning this scenario were moonbats. Now I've caught the virus, so it's time for someone else to think that of me. It's spreading