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Wednesday 26 September 2007

Market Crash by year end



Expecting the DJI to retrace to 12,000 by year end. Get out now while you still can.
Notice how gold and oil is at all time highs. Tensions over war. Defense stocks barely retraced in July's selloff and are now hitting new highs. The best way to trade this is to short small/mid caps and hedge long with big caps, because small/mid caps will be sold off first. Next look for financials, and consumer staples to selloff. The market seems like it is just drifting right now.

I DON'T LIKE DRIFTERS.

When stocks with big dividends are being sold and hitting new lows, that is when you know we are in a bear market. Currently some of the dividend stocks I look at are making new highs on increased volume, so some funds may be unloading near the top.

I'm bored and haven't read anything interesting in the stock market lately. Is anyone else bored with this stock market? Looks like another lame week until BoE comes out with it's interest rate numbers next week. Remember to short financials if it looks like a sell and buy tech or china if it looks bullish.

No one has talked about the bill Schwarzenegger passed making Calpers divest from stocks associated with Iran. I looked for those stocks, and I couldn't find any. Darn. Foreign money is being pulled out of Iran's market, and Bush increased the war funding in Iran to $190 billion. Commodities hitting all time highs. US dollar at all time lows.....Is there going to be a bigger War than what we already have?

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