DOW 9,000 or DOW 14,000? How abouth both...
May 19, 2010
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Got this in my mail yesterday.
This guy, John Lansing sums up how I feel about this correction and the market in general. I mean, the guy has the exact same opinion I do. I said recently (and will post below) that this bull market can't continue until we have bears strongly believe they have complete control of this market (and that they will get it below the March 2009 lows).
So here is what Mr. Lansing says:
The May 4th scare, which saw the Dow drop nearly 1,000 points before recovering, was just the beginning of the big shakeout coming…
…before we begin a much happier climb to Dow 14,000.
I’ve been warning subscribers for several months now—even as we made a ton of money on the long-side of the market—a day of reckoning was drawing near.
My technical indicators — from volume tracking to chart patterns to wave analysis — all told me it would be brutal. And the worst is yet to come.
Buy-and-hold investors will be brutalized and shocked by just how low the market falls by late July. But nimble traders will make a lot of money now and later.
The Dow’s headed for 9,000 and you can either get run over OR go along for the ride.
Then celebrate the next huge wave back up
As I said, this correction will be brutal, but it will also be BRIEF.
Never in my life of chart reading and technical analysis have I seen a pattern more pure.
This correction will shake out the dumb money yet again. And most investors will completely miss out on the mother of all bull markets, as the Dow climbs to new all-time highs in the next 6-9 months!
OK, I don't know about the "new all-time highs in the next 6-9 months" thing, but I do strongly believe this correction will not last longer than 3 months (until August). And I do belive this will still be the biggest bull market in history.
Kinda "Sell in May and go away, but make sure you come back in August"...
What do you think?
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