Dow has breached support, freefall inevitable

We have seen the Nov. lows breached on the Dow and S&P 500 today in pre-market trading.

I see a loss of 2000+ points on the Dow within the next 5-8 trading days.

Dow 5200 by a week from tomorrow is highly likely.

The few traders that are left are about to BAIL!

We will see Dow 3000 by 2010. DOW 3000!!

STOCK UP ON CANNED GOODS AND SHOTGUN SHELLS!!

The S&P hasn't breached the November support, in fact the S&P futures are about 25 points above November lows still. There's a good chance of a rally today off this level, so don't panic.

It only has to go to 4000 and its game over. you know like when the space invader comes along the bottom from that 80's game, even the music du dum du dudm is fitting.

While I largely agree with the OP, I believe the DOW is trading now on pure fear. These new lows and further lows are almost entirely psychological - as is, at this point, the continued deterioration of the economy.

There needs a return of the long investor to this market. One who sees GE at $9/share -- $9 freakin' dollars for God's sakes! -- as probably a great long-term investment. We need the steady investor willing to buy a basket-variety of shares and hold them through 2012. Sit and wait.

And I used to believe that our massive investments in 401Ks would ultimately be a stabilization, but instead, fund managers trade on the dime just to be sure their returns look good on a prospectus. I'm no day trader, bullish on Gold, but even see that as peaking probably within 6 months to at most a year. Instead, I can see some real value now to some very nuts & bolts Fortune 500 firms out there.

If what we're returning to is a producer nation, one using less debt to fund growth, then that's the roadmap by which I plot my investments.

Today is options expiry as well. That combined with the apparent complete lack of confidence in the Obama admin and people just waiting for C, BAC and possibly WFC to fail, results in really no reason to hold anything.

There's plenty of buying going on, but noone is holding. This is a trader's market pure and simple.

Options are your friend...

DOW is down 130 points after a few minutes of trading..

World Markets are down an average of 3 - 5% overnight.

Could be an ugly day.


Peace

They're all sounding very gloomy on Bloomberg and not even trying to talk things up.

Dow is now at 7363.12 - levels not seen since 1997 apparently.

Rome of Asia.

I think we will close around -100 or -150. We usually follow the Nikki pretty close and they lost 100 points. Its not going to be a one day free fall. IMO its going to be 100 point losses every day from here on in. A couple of rallies, but more losses then gains.. Pretty much how its been lately.

reply to post by downtown436


Hum it may not be that bad, bad, but not that bad, remember that the hidden investors out there will not allow the markets to fall completely, after all the money they use to play with is nothing but spare change to them.

As we the worlds population will always keep their coffers full.

reply to post by KaginD


"I think we will close around -100"

Haha, you were pretty darn close with some creative editing.

Ok so I'm bumping my own thread, because I think I deserve at least a shred of credibility out of this I was pretty darn close.

Well I was off by a little, but I think this next couple of weeks will solidify the level of econodestruction we are facing.

I'm going to make a prediction on the Dow. I think we will see Dow 5400 by 4/1/09, and Dow 4200 by 10/31/09.