Yes, I was Definitely Right About the Market.
Let me rub this in a little bit… Booooooyah!
I nailed it again. I said to sell into the rally last week, and then forecast a heavily red week this week. I have been about 95% right since July and if you want proof check out this post. I’m not psychic, but you don’t have to be to see the trend that’s going on right here and extrapolate the current conditions out and meter that with the super high volatility. When you have the biggest bear market rally since 1932 last week it isn’t too hard to figure out that we’re in for a decline. Add to that the fact that the end of November historically is bullish and the beginning of December is historically bearish.
Welcome to the the biggest 1 day drop since 1929. It was only a matter of time with the activity we have had recently.
Let me add a little bit to my hypothesis for the week. With the automakers on the stand tomorrow to receive bailout money from the US Government, the market could rebound tomorrow on positive signs of the automakers receiving the bailout.
I still see some of these events in their consolidated form for days like tomorrow. If it looks good for the automakers and we see a flat day (up or down less than 100 pts) it will be because the market was leaning downward and the bullish news consolidated to flat. If the automakers don’t get any good news, or bad news be looking for a down day again (-250+).
I don’t claim to be perfect but my track record lately has been stellar.
I recommended SKF and it went up 30%. I bet you are kicking yourself if you didn’t listen this time. I also recommended USO, which was slightly down but this is a longer term play, because the dollar will eventually drop and this will cause all commodities to rise. I like oil because its so freakin low right now. So is everything…. but oil is a safer play. It isn’t based on one particular managements performance, it is a very macro play, which is much easier to get a grasp on. It is also a personal hedge. If you use gas in your car you can get back at the pump by betting on oil to go up. I like that concept.
Thanks for reading and I hope this helps to understand a market that has left many baffled.
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