I can feel the weight of the market every day...pundits trying to talk it up, and at times hailing "the bottom happened last week". Depending on your time frame, they may be right, but only if you are extremely short term biased.
There is AT LEAST another dramatic decline coming that breaks the lows of the past two weeks, and perhaps two more lows. This upcoming decline will punctuate the initial wave (call it wave "A DOWN") of the new Bear Market that began at 14,200 in Oct. 2007. Look for a Dow level of 7150-7350 for the target of this finishing move of this initial wave down. Then, a multi month wave "B UP" should last into early 2009. Unfortunately, following that rally, the remainder of 2009 and most of 2010, perhaps into 2011, will be where the big bang shows up. This will be wave "C Down", and will be a doosy! For now, let's focus on the new lows coming in the next week to three weeks near Dow 7000. That is not only the last buying opportunity for the next several years, but the set up for the last exit point in early 2009, before the big one...
See last post for a very clear picture of my halucination.
Get ready, and stay tuned.
For what it's worth,
Ken
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