My Preferred Series should spike lower Monday to establish the bottom I believe is in place. It is a throw under (lower than the existing bottom in place). I suggested before the Terrorist War was declared against America last Tuesday ... that if it broke below last Monday's lows, then it seemed to be targeting 1040.00 Spoos ... that if it failed to turn up from an early spike lower, look to the Alternate Series. The circumstances facing the market Monday? Light volume, patriotism, greed, oversold prices, perhaps massive shorts already in place from unfriendly Middle Eastern combatants (some of them did have advance warning, after all ... and a reliable rumor suggests that Osama bin Laden shorted insurance and re-insurance companies several weeks ago to help finance his ugly terror). One must expect extraordinary crosscurrents to create vicious undertows and roaring rip tides. In other words, not a very "safe" environment to stick your head up out of your trading foxhole. Many people have suggested that it will be patriotic to buy. But in a panic selloff, buyers may be contributing to anti-American Terrorist Funds (short as a 4-second fuse). Very little on Wall Street is ever what it seems to be ... this week more than ever. But ... if I see a Position Buy at the open, just below 1070.00 Cash SPX, on a 25-handle gap lower ... then I will take a half-hearted shot at the terrorists with a Position Buy. And I will be willing to retreat on any reversal below that opening gap ... because I want to make sure I live to fight another day and beat the bastards. God Bless America. sellnow.net
My Alternate Series will head lower, establishing a clear break, well below the March 22 Cash lows, dropping hard enough to restructure the index in a major way. I'll just repeat what I said last weekend ... it's an ugly series, because it throws the market into a potentially very long-term bear market. It probably reflects a hard-fought, never-ending Terrorist War ... a conflict which at times will seemingly endanger the world as we know it. Especially as we start to actually win the war and the crouching, wounded tiger becomes thoughtlessly vicious (chemo and radiation claws). Anyway, that may be years off. On Monday, if the 1040.00 Spoos bottom holds, then that is an excellent position buy area. It produces a major bull fake higher in the ongoing bear market. However, it also reflects a dismal future for the world economies. As I said last weekend, before the bombing of America, this series possesses a heart of darkness. I did not realize how dark that heart could be. God Bless America. sellnow.net |
