We are set for a few weeks of sideways to lower action for the summer, before the bulls come and bring the monster rally. I still think we will see Dow 12,000 by year end.
It is possible that we could eventually see the low SPX 800's (or even high 700's) within the next two months, but I think that is the worst case scenerio. If you think about it, what isn't already built into the market? We are already priced for DOOMSDAY and collapse of our financial system in March! You go to bear blogs now and they tell you that commercial real-estate is the next shoe to drop. Just about everyone "knows" that, because people everywhere have been talking about it. Commercial real estate foreclosure isn't even the worst thing that can happen to us.
Tell me something new and worst than what is already on the investing public's minds.
Many investors have either sold and/or they have become short term traders. A huge amount of money is still on the sidelines and they won't be able to take the pain of missing the boat further if we rally higher. That's what's been supporting this major rally. Every dip has been, and will continue to be, bought.
It is possible that we could eventually see the low SPX 800's (or even high 700's) within the next two months, but I think that is the worst case scenerio. If you think about it, what isn't already built into the market? We are already priced for DOOMSDAY and collapse of our financial system in March! You go to bear blogs now and they tell you that commercial real-estate is the next shoe to drop. Just about everyone "knows" that, because people everywhere have been talking about it. Commercial real estate foreclosure isn't even the worst thing that can happen to us.
Tell me something new and worst than what is already on the investing public's minds.
Many investors have either sold and/or they have become short term traders. A huge amount of money is still on the sidelines and they won't be able to take the pain of missing the boat further if we rally higher. That's what's been supporting this major rally. Every dip has been, and will continue to be, bought.