Monday, September 6, 2010
A break of 10,205 on the DJIA and we are looking for a drop between 9,500 to 9,477 on the Dow or an approx. 7.+% pull-back. That would require a 210-point intra-day drop and it looks like we might make a late day run for it! Remember, our current inestment approach is to continue to Sell the Rallies, continue to Build Cash. Stay tuned here with us and we will attempt to provide forward looking exit points. You will note that we are not providing trading recommendations, to willy-nilly buy or sell based on some opinion of some chart method(s). Why, because for all our many years of experience we have found, "the charts, they lie" but not all the time, only when it really counts! For if building wealth was just a matter of studying charts and becoming an "expert trader" than everyone would do it woun't they! The truth of the matter is the vast majority of ALL trades loose money... And as for opinions, they are like you know what, everyone has one....
Over at the Private-WealthClub they issued there final and highest WealthAlert as follows: Since our May 12th Maximum Risk Level #5 High Alert! (final and highest risk level) when the DJIA was at 10,896 to today’s lows of 9614.32 (so far), the big board index and leading economic indicator has shaved off 1,282-DJ-points for an approximate 12% decline in less than 1-trading month. We are now looking for...
Professor Paul Krugman, P
rinceton School of Economics Professor and Nobel Laureate, predicts we are ALREADY in the early stages of a 3rdDepression. We of course agree! He specifically notes some of the very same things we have spoke about regarding depressions and counter-trend rallies back in January in our piece “Market Reflections, Outlooks and Predictions - 2010 The Show Me Year.” Where we believe he is mistaking is in his belief that governments can somehow prevent the depression from evolving. By now, it should have become obvious that governments with all the political complications, inefficiencies and unintended consequences can control the future. The problem is one of debt and far too much of it. No amount of spending or saving for that matter will prevent the inevitable contraction that is to come. And how is that so, because…
In a brief but intense 24 market days, the decline has come with what appears to be intermittent, institutional selling, capped off with brief short-covering rallies. These short lived rallies have had the effect of spiking the averages, just so they can be shorted once again at higher levels.
All the while, the familiar cheerleaders over at CNBC and their so-called expert talking-heads keep chanting the same old cheer. You know them well, the same so-called experts who didn't have a clue about the Oct. 07 thru March, 09 Wave 1 down aka the last crash. The financial blabber mouths were all high-fiving each other about how great the economy and the markets were (yet again) all the way up to and the recent melt down was commencing; telling the investing public to practice Fast Money, Mad Money, Option Strategies and other gambling oriented activities! Because after all, to keep people watching you get them addicted! And let us not forget the authorities, who at least at face value appear as if they couldn't be more clueless about what is really going on, let alone what to do about it! Meanwhile… (Continue Reading)As of today’s lows the equity markets have already shed 1,368 Dow-Jones Industrial Average (DJIA) points for more than a 12% decline from their April 26 recovery highs.
Market Reflections, Outlooks ad Predictions - 2010 The Show Me Year
By: The Private WealthClub
Deflation vs. Inflation - which one are we in?.
By: The Private WealthClub