The Market Is About To Plunge (Day 14, Vol 12)
Today was an exciting day, however I urge caution and prudence rather than cheering and celebration. The bulls have been very strong over the past two months; they've had far more endurance than I expected. We must respect them and realize that they will use anything, no matter how stupid, to set off another rally. The way the market was reacting to GM news last week, I fear a surprise Ford bankruptcy announcement could shoot the S&P to new highs! We must remain vigilant and aware in case the bulls bust out their crackberries and set off one more round of malacious rumours, unbelievable spin and malignant short squeezing to try to grind us back to 930. With OPEX coming up Friday, you have to realize danger is high. While the put/call ratio has been absurd, it's still possible the market makers will try to prop stuff up until your puts expire worthless. In all, be cautious, we've probably entered a downtrend of a significant degree but we haven't broken enough support to celebrate yet. When I break through 11,000 points and climb up to the top spot, then it'll be time for us bears to start poppin' champagne.
A cold analytical rundown of the numbers:
SPX 883.92 -24.43 2.69%
Nasty-100: 1340 -37 2.8%
Dow: 8285 -182 2.2%
Dead banks (XLF): 11.39 -.61 5.08
Russell 2000 small(and shrinking further)caps: 472 -23 -4.7%
GoldminingXpert: 10,465 +709 7%
The Reality Index: 2,103 +723 (+52%)
The Companies Rapidly About to Fall (CRAP) index: 54.55 -8.39 (13.33%)
portefeuille: 10,388-573 -5%
Bears: Enjoy your gains today but remain vigilent.
Bulls: If you couldn't handle today, sell tomorrow because we bears are coming out of hibernation and today is only the beginning of our next hunt.