Saturday, January 19, 2008
Weekly Update
Retracement levels are marked from the October 2002 low to the October 2007 high. But the line I feel we will eventually hit before a bottom is put in is the line drawn at the 2006 low. About the same time this whole sub-prime slime housing crap started to come to light. Click here for a good look at the weekly chart. Last year in May I was expecting a pullback to that area. I figured the correction would end in the Fall then a good rally back to 1500 to end the year. That never materialized. So I told my golf buddy's to exit the market after July 4th because of the warning sign I saw. Friday there seemed to be signals from our so called men in control of this situation. When Paulson said he was going to "run like a bunny" to get the bill from the House to the President for his signature, it made trader's very worried as to just how serious this situation must really be. Bernanke has made the situation worse by not taking the advice of the bond markets for some time now and lowering rates. He must think he knows something more than the collective traders around the World. Oh yea, all that inflation he's worried about. Well now we have deflation if you look at home prices and stocks. After 8 years of lies, the S&P is now lower than when Bush took the Oath, and we have a War that is causing us to lose a great number of GOOD MEN & WOMEN including to suicide upon returning home. We should have listened to IKE and put a stop to the Military-Industrial Complex. Sorry about the political rant, I just had to get some shit off my mind.
Back to the market. I'm looking for an oversold bounce next week that should last at least 45 minutes. Good Luck!!!!
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