DOW poised for a Short term "BEAR RALLY" and a "short squeeze"
good to see copper recover following a big dip last week............copper up approx 7% following a string of positives coming out of the US.....Obama anouncing his economic team and GOVT backing CITIBANK and gaining preference shares .............now all we need to do is get the banks to lend back out to the market to help stimulate the economy .....Obama also talking about creating 2.5 million jobs in relation to roading ,infastructure, schools and alternative fuels, so thats good for base metals in general
China uses 25% of all total copper produced and it looks like the chinese governments will also inject money into their economy.........
so today all in all we may see the beginning of a "short term bear rally" and hopefully we may see a "short squeeze" rally which means the shorters will have to buy back the shares that they loaned then sold the market down with.
I enjoy seeing the shorters suffer.....as they are responsible for excessively overselling the market..............
sould get a good bounce today ........GOLD up to $820 COPPER up 7% DOW up 300 points(currently with 1. 1/2 hours to go)............all good signs for a fat bear RALLY!!!!
Crystal Balls and the Dow
Quote:
Originally Posted by
airedale
http://i474.photobucket.com/albums/r...9/DowJones.png
The records show that the first 5 days of the year...then so goes the year.
In 31 of the past 36 years the Dow's first five days of trading have predicted whether the market finished higher or lower for the year.
Thursday will be the fifth day of trading on the US markets, so we should know on Friday morning.
Well after the first five trading days on the Dow, the crystal ball gives a negative forecast for 2009.
It closed at 8,776 on 31/12/08 and closed this morning NZ time at 8,742.
Just 34 points short of the target.http://i474.photobucket.com/albums/r...aystrading.png
Year End Stock Market Valuations 1927 - 2008
Quote:
Originally Posted by
winner69
This article suggests that the S&P trading at about 29 current earnings estimates but really is trading at something like 57 times expected earnings ...... ouch
No reason to get too excited .... even if the glass is half full
...further confirmation that equity prices are NOT EVEN NEAR HISTORICALLY NORMAL LEVELS (see attachment) despite the rantings of currently dry-docked institutional investors to the contrary!!!
...this is still very much THE BEAR... and asset price deflation will not stop until the last bit of hot air is squeezed out of the bubble... no matter what the GOV-FREAKS are churning around in their 'leaky syndrome brains'...
Trading Strategy: BEARISH -short to medium-
short hedged accumulating ~858 (+);
-accumulate stocks -medium to long term- on fresh market lows
Hussman: There is No Substitute for Mortgage Debt Restructuring
...From a valuation standpoint, I do believe that the stock market remains undervalued (though still far from the deep undervaluation we observed in say, 1974 or 1982). Accordingly, I do expect that long-term investors are likely to achieve reasonably good returns in the area of 10% annual total returns over the next 7-10 years. However, we have to be well aware of the tendency for weak markets to overshoot on the downside, so we continue to be unable to rule out even the 600 level on the S&P 500 as a possible (though not an expected or predicted) outcome.
http://www.hussmanfunds.com/wmc/wmc090209.htm
Kind Regards