If you notice the major drop in the market is after the end of the quarter. Corporate balance sheetsquarterly reports are not effected by mid month fluctuations. 401k's need to have a certain constancy from end of month to end of month.The best time to leverage congress and at the same time allow certain mega powers to make money on huge moves is in the middle of a month, the beset month is the first month of a new quarter and the middle of the second month of the quarter.If the market rallies at the last week of these months little damage is done to the confidence of investors since their 401k statements will not be overly affected.
Last month I sold 90% of long positions and loaded short 50% of portfolio.I calculated a major drop for this month ending around the 3rd week.at that time I will Load up a DDM etf till the end of the month.Even with a 11 hour rally I still expect Oct's Market to finish with a loss.I would not be suppressed to see us go past the Oct 17 deadline for the Debt Ceiling.This will give an extra nice drop, perhaps one of the last real good drops before the corporate profits actually do take hold.
Nov will end to show a nice profit on the 401k's statements that come out in early December.The end of the year should be higher then the low we will soon experience but may not be as high as the recent highs.
What will all of this accomplish?The tea party gets a black eye.The shake up in the market will lower the interest rates.The in-the-know big player make a fortune on major moves, this is money they can use to manipulate the market when needed.Bottom line we may have a good opportunity in the next two to 6 weeks to buy. [more]