Replies to post #1774 on GE Aerospace (GE)

[Jetmek_03052]

nlightn,

Completely different time in space. Meltdown in the financial world drove the meltdown in the dow and other markets.

Things are far different now. There is uncertainty in the markets but things are not as bad as they were at this time last year. No one knew if we were all about to be in breadlines then! People were talking of things being like they were in the great depression. While remotely possible, I don't think we are anywhere near that scenario.

My point was that the market dived in the beginning of the year and recovered nicely. Profit taking after a sharp decline here may very well propel the market out of its present doldrums and reveal another year somewhat like the last.

We still have problems but nothing like the madness that drove banks and other financial institutions to ruin last year. Yes - there will still be failures but not on such a scale as it was.

That being said I will say that if the dow decreases much past 9,900, I think it will continue to decline and steady in the 9400-9500 range.

All my opinion and freely admit I am not a chartist and could be wrong. I look at the chart and see obvious area's of support and weakness. You seem well versed in chartism. You gave examples based on my predictions. What are your predictions for the Dow?

You stated you hold GE 13 puts so you obviously expect the price to decline to fill the $12.70 gap...maybe beyond? I would be surprized to see it decline much past the gap fill....if it ever gets that low.

[NovoMira]

Most stocks took a beating last week, including GE.. even the late rally Friday wasn't enough to recover, unfortunately.

The Dow has fallen 6.7% since its high set on January 19 and is down 4% for the year.

Where will we go next? Most economists predict subpar growth in 2010...but, consumers are dealing with too much debt, help from the Gov will prolly slow and businesses are leery thus aren't spending much. However, if recovery conforms to historic patterns, growth could be surprisingly strong. We shall see...