my target for the dow is still the 9k area. we break that on a closing basis on good volume,we go to 8k.. i'd be shocked if we drop further than that.
I think a drop below 8500 is coming and I would NOT be shocked if the Dow drops below 8000. The market has been stimulated for the last 18 months and if everything does start to spiral again out of control they will introduce another round of stimulus to prop up the economy. Everything has been an illusion in this economy, there has been nothing but free handouts the entire time.
I must agree with this observation of the situation: As I said, eventually, fundamentals catch up. Reality vs myths-- Reality is there is no recovery. China's increase in oil consumption is a very small percentage of total global consumption. The US and EU which consume the most amount of oil by far, have reduced consumption more than 30% overall. As the economy sinks into the mire, demand will drop further. Reality is all the stimulus money did was prop up commodities to unsafe and artificially high level. Unjustified prices for the level of demand causes bubbles. Same with housing, same with tech stocks etc.
exactly right, that's why over the last 18 months everything has been an illusion with bubble ben bernanke using as much magic as he could to help prevent any further collapse in the system. There is no recovery and wont be a recovery, the system needs to be washed out completely, until then its pretty much a worthless economy.