Replies to post #24088 on Fiends In Stocks

[DeepBlue1]

Jobless claims just came out and that pushed the futures down from the "wait and see" flatline they were hovering at this morning.

So this 8000 level will quickly become a major RESISTANCE line rather than support as we break down below it...unless, somehow, by some miracle or mechanism it manages to hold for the next day or two.

I've sort of given up on trying to understand gold/silver movement for the time being. It's predicated on such a large number of factors that it virtually impossible to make any sense of it or predict the moves.

I'm just playing the DOW itself via leveraged ETFs now.

[DeepBlue1]

Weeeeeee DOGGies! Ride em cowboys! LOL

I was out this am, then went long on the "news" that an agreement had been reached on bailing out GM. Then found out it wasn't really news at all and sold my long position. Then went short again as the market turned and closed that position 1 minute from the close for a nice little bundle of coinage.

Probably should have stayed short, but I did save myself 3 full points by using my tight trailing stop.

I can't imagine anybody wanting to go long over the weekend so I'll probably go short again at the first inkling of a continuation of the drop tomorrow.

Dollar broke the 87.75-88.00 resistance at the eod too, so that'll help push stocks and silver/gold down some more tomorrow.

Capitulation is upon us here very soon, but I'm thinking it'll be closer to 6000 than 8000. Maybe a lot closer.

Naptime...TTYL

[DeepBlue1]

Looking ahead...

It's very possible that after all the tax loss selling that's happened and will happen between now and the end of the year, that January 1st may be one of the best buying opportunities of all times.

There's literally TRILLIONS of dollars in cash and short term treasuries just salivating at the prospect of the bottom turn, and this very fact is itself driving prices down as we speak.

I have a feeling that when this thing turns it'll be big.

[DeepBlue1]

RE: Looking ahead...

It also just ocurred to me that if I'm right about the money now going into short term treasuries and cash for tax loss selling now and till end of the year comes out and goes into stocks that will have been beaten down even much more than they are now,...

that that will also signal the end of the HOARDING of the USD, effectively INJECTING MASSIVE CAPITAL into the system, finally accomplishing the very thing the Fed has been trying to do all along. This may even be part of their plan. It does make sense.

So, not only will stocks rise on new inflows, but the inflows will be in INFLATIONARY DOLLARS which should have a big MULTIPLIER EFFECT on the price of stocks and commodities because as the dollar falls in value it makes commodities and stocks "more expensive" in dollars that are being devalued.