Click here: CNBC Stock Market News — Another 'Freefall' to Push Dow Below 5000: Strategist - CNBC
If the primary Elliott Wave count is correct, we should be starting Primary Wave 3 which would take us much lower (wave equality plus) than the March 2009 low. The alternate wave count, which we have to consider, would be that the upward wave just completed is Wave 1 of another upward Wave 5. Considering the economic conditions and out of control spending by this administration, the primary count makes more sense. It will not happen overnight and may be slow with pockets of sharp declines.
I have taken positions in the SDS and QID and plan to hold them for a long time, although I have not liquidated all my stocks yet. We should get a rally back close to the DJI 11,000 level (a wave 2 rally after we complete the current wave 1 decline below DJI 10,380) and if it doesn't make a new high over about DJI 11,250, that would be the time to liquidate.
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Covered SDS and QID at the opening today and will be looking to put them back on higher up.
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"We are in a Depression folks. We are in the fourth year of what will be a ten to twenty year stint. It is going to get a lot worse. All the talk is of a 'double dip'. What no one is thinking about, and should be thinking about is the possibility of a 'tripple dip.'
"Markets are priced as high as they are now because the Central Banks of the world flooded the place with money.
That printing of dollars has to manifest itself as inflation.
Inflation is already rearing its ugly head.
Housing and Commercial construction suck. They will get worse from here.
Mortgage resets will get worse from here. There will be a peak will be in the Summer (possibly triggering dip number 2) and there will be an even higher one in Summer 2011 (possibly triggering dip number 3)
When major market dips occur, the Central Banks will probably flood markets with more cash.
This will promote wild market swings.
Institutional traders will be calling the shots, not private investors.
This will promote wild market swings.
Richard Suttmeier thinks we will see DJIA 8500 before we see DJIA 11500.
Some even think the DJIA could fall to 5000 in the wild swings."
I get nervous when most start agreeing with me. We are due for a sharp rally for Wave 2.
ReplyDeleteA Market Forecast That Says ‘Take Cover’
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