33 Hours: Do You Know Where Your Puts Are?
We're just a day away from there being no bailout as the markets open Sunday. (Futures and Asia) The market ridiculously pumped itself up last week off rumours of a government throwing money in a foreclosed-on toilet plan. This plan appears to have died a well-deserved death. Now we are up more than 500 points off the rumours of these shenanigans, plus the market is badly overvalued. So at minimum, we take off those 500 points, plus some selling momentum adds in a couple hundred points. Once we punch through Dow 10,000, the selling pressure is going to get harder. While my Dow target has been 9,900 for this year, we could get all the way down to Cramer's 8,300 call for the Dow this autumn. Do you know where your puts are?
P.S. the bailout delays the crash for a week or two... the dow is fundamentally worth 8,000... bailouts will fail until stocks are valued correctly... stocks have to drop 25% to make the market priced right, 40% to get true bargains... voting for a bailout is just equal to selling your grandchildren to the sex slave trade.