posted on Mar, 18 2009 @ 01:04 PM
The past 10 days has been a suckers rally in my unprofessional opinion. There is absolutely nothing indicating that any of these companies are good
investment opportunities when it comes to stability and forecasts. That means that day traders are likely short selling the crap out of the market.
Expect the dow to close somewhere over 7400 within the next week or three, then a drop to the 6000's by late April or early May. I have to re-read
"It's Just Time" by Martin Armstrong because that does explain a lot and I think right now would be a good time to test some of his theory. IIRC
(and based on the work of somebody else) the rally we will hit by May will be very strong and will likely get the dow back up to the 9000 or even
10000 mark for awhile.
So if you feel that you have missed the opportunities, don't worry. This suckers rally is as irrational as they come so just stay away unless you
are really confident you know the next move.
A wise person would read up on Armstrong's work and do some calculations to see when a real bottom is in. Then test the theory and if things follow
your modeling, then you can invest with more confidence when the market dips lower again. We are by no means at a true bottom and that true
bottom may not hit until late summer or beyond. An intermediate bottom is what I expect in late April or early May.
Think about it this way, (my little theory derived from the other theories I have been researching):
The stock markets and global economy is a product of human action. It is almost purely human. Humans are from nature. Despite all we know and love
about manifest destiny and free choice, we do operate in certain discrete patterns. The markets are an aggregate of these human patterns, and it can
be predicted. So no matter how we think we can manipulate this mysterious 'free' entity like the stock market, remember that it is merely a product
of human function. It will do what it is destined to do.