on the back of a 600+ or 700 point drop in the Dow...we can only say we've been here before...

the feeling is familiar...although at -300 during midday...i didn't think it would go that far that fast...even thought it would rebound to a minimal loss

nonetheless looking forward...there's something new in all of this...that the crashes are losing steam...

i remember declaring a target level of dow at 6900...i would be highly optimistic for it to hit that...maybe scraping low 7000s is an optimistic hope from a philo-short speculator like me.

i really feel...similar to my previous prediction...that somehow...things will accelerate and steam off by december..

however i also feel historically december has been a positive month...could this mean january has more carnage in store?

it would be really surprising...

anyway i mean to say that we're nearing the end...maybe witihin the next safely 3-4 big drops...and that's it we're done...we've scraped bottom and will retreat upwards into a long narrow band...

take advantage of emerging markets like china though...and those governments that have poured money into their economy through fiscal and monetary stimulus...

those economies will be the leading lights ahead. someone once said that the amount a government spends during a recession trend not just lessens the pain but also causes the future growth to be much better...in their words...the loss of gdp would not be that bad

so if the US doesn't get a big fiscal stimulus going...then it's high time to dump almost ALL broad based US investments and run elsewhere...but if obama does what's promised...the US will survive one more round...however with an even greater devaluation of the dollar...(que gold and oil prices to rise)

well that's enough for now...

happy trading/speculating...

do not take this advice as a basis to trade. and i shall not be held responsible for your life's savings going down the drain.
speculating and trading is highly risky and no one can predict what is going to happen.

Tags: market forecast