What's going to happen when the market gets back down to 10K again?
We've all watched the slow, steady decline over the past few weeks as the market sinks closer to 10K. Despite the best a 'jobless recovery' can offer, the gears of Wall Street seem to be slipping again and I fear that crossing the 10K mile-marker will be the impetus for the next phase of the crash.
With the market in the 10+k range, people (those not paying close attention) may have relaxed a little and even jumped back in the market trying to recoup some of their losses. That quickly turns back into greed and they stay way too long at the dance. Now they are in the same position they were in prior to the last crash. Sure, it's going down a little.... maybe if we just wait it out....
Famous last words.
I feel that once it reaches or dips below the 10K mark, the nationwide panic will resume and the sell-off will begin in earnest. Once that happens, who knows where the next bottom will be? 7K? 6K?
I haven't posted in a while but I'm quietly waiting and watching from the back row... you know, the one closest to the exit?
What's your thoughts?
Next Time the Market Hits 10K
It will either continue down or go up.
It depends on whether or not the dollar has collapsed at that time.
You're not still playing in the market, are you?
Thoughts On The U.S. Markets.
Mr. Barnenke said from what I remember was, the "Main" job of the Fed was to provide dollar price stability.
Now if stocks, go up 100 points one day, down 100 points the next day, and so on, my opinion is that that reflects "Un"-stability, in the American economy and in the value of the U.S. dollar !
Who benefits from these fluctuations?
Investment bankers { like Goldman Sachs } that collect commissions on every stock sale.
Years ago when companies paid good dividends to common share holders people invested in them, myself included, but now it seems all profits from companies are eaten up by making loan payments to investment bankers who could care less if common share holders are investing for retirement. You see bank repayment loans for a listed company, have a higher priority than common and preferred stock. Which means dividends are not paid as long as a company owes a bank.
Most pension funds have gone down in value over the last few years, while physical Gold has out shined most stocks:
Here is a chart that shows the "Appreciation" of "Real" money,,,Gold/Silver !
http://goldmoney.com/commentary.html
beesting
They'll pump...
pump it up...like that Chris Rock Thanksgiving turkey.
People still keep jumping in, so why should they close up shop when food's feeding the fire? It's like microwave popcorn - you only hit "stop" when you don't hear any more popping (but then you hit it quick). We are the snack for their late night movie viewing.
Assert Your Authority
It might bounce
But that will only be short term. There are still some die hard bulls out there that would think it was the buying opporutnity.
I think there might be a quick stampede on the upside. And then look out below!
When it starts to fall, it will be fast. There will be a simultaneous 'Oh sh!t' moment. And everyone will run for the door at the same time.
That's basically the definition of a crash: a collective, "Oh sh!t" moment.
I think it's bouncing now...
Just how high you can bounce a deflated ball is yet to be seen.
I may not know the truth, but I know when I'm being lied to...
im not so sure its ready..
there wont be a "panic" yet... people have been planning for and expecting this sell off for a long time. Watch the dollar euro for a signal to the next real sell off... if that breaks 1.23 or 1.2 it could get ugly but right now without an outside "event" the trend of the markets will soon be higher.
p.s.
With a crash of that magnitude, it might come in coincidence with a 'terrorist attack' of some kind.
There is a lot of foreshadowing going on in the ether about another attack.
The bankers are in charge of this market, not the fundementals
it will do what ever they decide to do.
It depends ...
on the financials.
They basically make up the dow.
Watch SKF ...
If it gets close to 50 ...
we could have a meltdown 2.0.
Unlikely, but possible.
Has anybody done a breakdown of financial companies in the S & P prior to October 2008 and after.
If I am not mistaken .... quite a few non-financial sector stocks got booted so the makeup is much more financially skewed.
I know that is counter-intuitive, but I think that is true.
WAHOR!!
http://www.dailypaul.com/node/48994
El Market
China is probably the largest influence in the markets--and their vulnerability
is becoming obvious. The gov just
imposed a freeze on lending. Credit
lines are unavailable. We may see ships turning around mid-ocean. Anyway, I
do see increasing erosion in our market.
End of this year? 8,000 with 2,000 gold.
Agree with the China comments Scott...
I'd dollar cost average into some short positions as the risk vs reward is an easier call versus what the U.S. market will do.
The U.S. Market is overvalued based on P/E ratios, but that doesn't mean it can't go higher...but only on a cyclical basis. We're still in the grasp of the secular bear.
My Christian/Political Blog:
We the Serfs! Blog
Hey,Doug Yes to the
cycle, but I think there may only be one more relatively feeble attempt upwards. The metals? Man, I wish I could eavesdrop in JP's boardroom !
And ,of course, the big gold shorter
in Hong Kong
I really see the world being "torn assunder" shortly.
Since China owns a good part of our debt...
...you can count on ships turning around in mid-ocean!
Sometimes you just have to cut your losses.
I may not know the truth, but I know when I'm being lied to...
freefall downward. anything
freefall downward. anything below 10100 is psychologically bad news.
I wonder too.
I wonder too.