Warning .... A Buying Opportunity is Looming on the horizon !

"Longer term, this correction will be a good thing. It will bring financial markets closer to what is justified by fundamentals," Mohamed El-Erian, chief economic adviser at Allianz, told CNN over the summer. "It is going to provide some genuine investment opportunities."


money.cnn.com...

This is rational and reasonable.

I made a couple late day purchases that I feel were oversold.

I think I will stand pat for now and take a wait and see approach.

I made a couple late day purchases that I feel were oversold.

I think I will stand pat for now and take a wait and see approach.

Still hanging tough. The bottom cant be far away, but it has been gut wrenching.

a reply to: smirkley

We are going to open real low on the Dow this morning..
Double bottom next week with last years lows?
All my trades last year were short sales and all turned a profit, but that double bottom may provide a bounce.

a reply to: Slichter

And that is exactly what I have been watching.

Dow closed down 2.39% NASDAQ down a little more at 3.09%.
Monday being a market holiday in the US its up to Asia two nights in a row.
Danger is that the Asian markets will break support again to the downside below last years lows.
That would put a lot of pressure on the US markets Tuesday opening.

Really the only motive China and Japan would have for tanking global markets is that historically the Asian markets seem to prefer fast paced market corrections rather than long drawn out slides.

a reply to: Slichter

China's yuan was pegged to USD which resulted in enormous inflation (and 25 trillion in debt) from US QE but they tolerated it because the US middle class was one of their major exports. Now that US middle class has collapsed there is no reason to stay pegged to the USD. So the question now, can China stay above water, given there isn't a massive market to drive their exports anymore.

The whole shabang appears primed to explode which will make 2008 look like a little firecracker. Price of oil might have been purposely dumped to try and fire up the economy but too little, too late. Brace for the impact.

Nikkei in Japan just opened down 400 points.

a reply to: Slichter

I have been watching the futures.

*** fingers in ears ***
La la la la ...

I get real time futures charting on my phone.

It still hasnt hit the 52 week low.

I am looking for the bounce off that bottom on all markets.

If it doesnt bounce, I will be looking for bargains at the bottom,... again lol.

I am sitting at -5% as of today since October.

I need a bounce bad.

a reply to: smirkley

All the technical traders are watching that double bottom.
Too much wierd stuff happening in the news.
White house reported that Obama was proposing a "New Deal" style extension for unemployment benefits, Why?
Its a short trading week on Wall street, lots of ways they could play that double bottom.
May look like a good time to buy for most of the first three trading sessions.
I'd stay cool and keep my cash on the sidelines..