Round and Round It Goes

by billb 24. October 2008 08:54
  Futures are trading limit down this morning.  This hasn't happened in a long, long .... oh wait, just a couple of weeks ago.  And on that day the market cra ... oh wait, no, it finished positive for the day.  The market is a bit of a roulette wheel at this point.  Anyone pretending to know where the market will end up in the short term is fooling you.  The only bullish chart I could find was the U.S. dollar.  Is everyone selling stocks, bonds, and commodities and hoarding dollars?  Who woulda thunk? 

OPEC cuts production by 1.5 million barrels.  And oil prices surge ... no wait, tumbles nearly 7%.  Seems like bizarro world.

The only thing you can do is cut through the fog.  I've pegged values in the Dow to open up and buy some more.  This is my plan and I'm sticking to it.  My next stop is Dow 7500.  My last point was 8500 and I performed that buy a couple of weeks ago. 

Even with a dramatic sell off at the open, we're still not hitting the previous lows from two weeks ago.  And even if we cross those lows, we're still in a relatively "normal" bear market.  Does that mean it's going up from here?  Don't know.  Does that mean that it's going to remain a "normal" bear market?  No clue.  Keep in mind that the last bear market ripped the S&P 500 to the tune of 50% and the poor, poor Nasdaq still hasn't recovered its previous high.  In fact, not even close. Arguably, this is the bear that's still gripping the Nasdaq that started in 2001.  Now THAT'S an abnormal bear market. 

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