I'll get right to the point. The market must hold 13,000.00 tomorrow or we could all be facing a very hard, long winter. Not one for drama and forever the eternal optimist, the facts are too overwhelming regarding the next 24 hours of trading.
The market first crossed over the 13,000.00 mark on April 25, 2007. We set the high on July 17, 2007 at 14,021.95. The scary part about markets that run up so strong in short burst of time is simply the fact that little if any consolidation takes place to provide true foundational support. There will be nothing under the Dow should 13,000.00 fail to hold. The first real test would come just under 12,000.00. After that, the next swing down would aim for the 10,600.00 range.
Value is no longer relevant to this market. The American economy is the same today as it was in late April of this year. The Twin Sisters are now the driving force of the street. Greed and fear are always lurking up and down the corridors of American investing. When left to roam the countryside unattended as they now are, the sisters become far more damaging to the general mental stability of the investing public.
Let us all hope for the best but let us clearly prepare for the worst.
E. Rabbit
Tuesday, August 14, 2007
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