Those who talk about Black Mondays, I think you're probably wrong, so be careful. Because it's tax day and margin calls will be plentiful okay that's a big negative. But today was the biggest point drop in history. Naz stocks plummeted 1000 points this week. That is a major crash. Remember the last few crashes? The next day brought powerful buying and upside momentum. I don't know if it will be Monday morning but inevitably there will be massive bargain-buying, short-covering and tons of sideline cash at least nibbling. Once the momentum changes many many big investors will want to get in for the long haul. Small ones too. The market won't fix itself in a day or maybe even this year completely, high-fliers won't return to loftiest levels anytime soon, but tech profits should be good this coming week (see SUNW) and the media buzz will start turning positive as it always does. CNBC will be interviewing experts about which bargains to buy. International investors will need to put their money into "safer" big cap US stocks and suddenly or gradually we will correct back upwards at least 10% or so. Great damage has been done but everything that comes down goes back up sooner or later. I would be shocked if we don't reverse direction within 2 trading sessions. Also last year April 15 was a nice up day in the market, as I remember. Right now you can get the best stocks at a big discount. Those who want to get rich and have cash will seize the opportunities. Also, unless the big boys start going bullish this kind of slide risks causing a recession, which is the last thing anyone in the world wants to cause, including Greenspan, Abby Cohen and every other most influential market leader. That is why I stuck out my neck and bought at the close today. This afternoon was almost complete capitulation by bulls. In many stocks we haven't seen prices this low in years. And what has changed? A little inflation. No big deal.
Yes I'm shell-shocked too and feeling vulnerable, but bottomline it's to everyone's advantage to get together and turn this thing around fast, including the US government hoping for all those tax dollars. This weekend and Monday's media buzz direction should be interesting. I know all it takes is Joe Kernan or someone talking about the frenzy of bargain hunting to get things moving again. Remember, all the trillions didn't disappear, it went to cash and other safe havens. But a biug part of that cash wioll come back as soon as someone lights the fuse. Then I wouldn't be surprised if we have a rally ass big as today's drop. |
