Monday before February expiration. Dow down 4 of last 5. 2009 Dow down 2.8%; Up 11 straight from 1994 to 2004. Ash Wednesday is tomorrow.
Last week we saw the market move from lows of 9850 to highs of 10,300. As you review our Dow projections note we believe we are still in the same Dow cycle.
Our projections list the lows and highs of last week. Profits were possible each day of the week on the massive whipsaws, and the light two way trades that occurred like clockwork as the market would struggle to make "good" of news, and interpret the woes of an island (Greece) that are making the EU think on how to "save" a country.
Mixed signals as to economic recovery vs. economic unemployment woes are woefully explained, and we as a people expect the impossible.
From Floydian logic, when there is a severe recession there are massive layoffs. All the credit given explodes. The economy implodes. Businesses are slow to rehire, as they cannot get credit, and fewer buy from them because they are not working. It is a circle that can only be broken by massive exuberance (we are far from this), easy money at low interest rates (how we got in this place), or time, as the recession slowly leads to inflation.
Thinking Obama is to blame for high unemployment is stupid. Of course the economy is to blame, and the economy will decide how it will react----the will of the people in the breathing of the market.
We saw a clear and severe near 10% drop as we hit Fibonnaci highs in the past two weeks, and whipsaw could continue, but longer term (two weeks) we are slightly bullish.
You will make money like you made last week with us if you :
1. study recalculations of pivot
2. follow simple rules, or don't trade
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