Wow, market is moving right where predicted.....

To anyone reading this blog......I hope you listened to me and sold your shares when I clearly told you to. This market is bad. It is only going to get worse. However, on the bright side, I do expect the market to move higher in the short term, up to a week. This should provide an opportunity for you to unload your shares before it is to late. With the move down last week and today we have basically confirmed my suspicions that the S&P will bottom somewhere in the 400s and the Dow somewhere near 4000.

This is going to be/already is the first depression this country has seen since the 1930s. If you don't believe it you are really, really wrong and need to have your head examined. Some people say....."well it is time to buy because stocks are cheap". NO!! Stocks are not cheap. If you value the stock market on a P/E basis the market would have to fall to around 515 on the S&P just for stocks to be as cheap as they were during the 1974 recession. We need to fall to nearly 350 on the S&P to get as cheap as the Great Depression. So, when so and so tells you on CNBC, CNN, or Fox News that it is time to buy stocks, don't listen. They are just flat out wrong.

Here is an update of the carnage:


Short Term: Bullish

Intermediate Term: Bearish

Long Term: Bearish


"Blaming speculators as a response to financial crises goes back at least to the Greeks. It's almost always the wrong response."

-Larry Summers