Wild markets? Agree or disagree?

Discussion in 'Wall St. News' started by Option Trader, Jul 30, 2006.

  1. This is an opinion from Timertrac e-mailed to me:

    TimingNewsletter.com Friday, July 28, 2006

    Well, I predicted this real estate slump two months ago in a previous broadcast. It was reported two days ago that there have been more cancellations of home sales contracts than contracts for new homes sold. The Fed is done. That’s it, nada, finite, end of story on any further rate hikes. There is no way this economy will need any further tightening. Why? Because the Fed will have to start cutting rates this spring. You heard it here, first!

    Get used to wild market swings forevermore in the future. NASDAQ down 50 or up 40, from here on out. The markets are what I would call daily event driven by our friends or enemies in the press. That’s part of the problem, we will never figure out friend or foe in the liberal press. This news event market is a new dynamic that takes some pretty good crystal balling. I’ve finally started to get a grip on this crazy new market world we now live in. Nobody will ever be able to predict what loose lips Bernanke will say or the crazy news hound terrorists will do next to get a headline. Impossible. So, what we are left with is a trading strategy the tries to grab most of the momentum in either direction. The markets will turn on a fast dime daily now, with instant news everywhere. That means we may lose 100 points on NASDAQ in two days and let’s hope we can net out maybe 50% of the swing to stay even. Likewise on the upside. The days of a long extended up are over. The market may gain 12% on the year but there will probably be 150% in swings. We just want our little piece of the good and bad.

    Mike Vallone, founder and editor of The Timing Newsletter, copyright 2006 http://www.timingnewsletter.com