I'm trying to get a chart online SmartMo, that will illustrate what's happening to NASDy. In essence, Uncle Algae & his Federal Fandancers have achieved Objective #1.
They have slowed the economy.
This has resulted in setting NASDy back one growth track; essentially the same one it was in as of last October, before any bubble afflicted it.
In one sense, this is a good thing as it may permit NASDy a sustainable growth rate.
But there's two downsides: a disappointing Fall run is the nearest. The other is if Uncle Algae's overdone the slowdown, we'll fall back even further by June.
The nearest term drawback that I was warning about all day, is this ugly week-to-be. But its saving grace should be a nice rally at the end.
I may stick around little the next two days, trying to DD the plays that'll bounce furthest fastest. Because, imo, maxing out every rally is the only way to reap a proper harvest from an uninspiring Fall.
There's likely money to be made tomorrow, mind you. At 3355, we could drop 122 points without breaking Monday's low, and 128 points without breaking April's low.
As you know, this means Wednesday may be mild till the last hour or two.
My guess is a worse Thursday though. That's the one to skip completely.
I plan to position for the bottom on Thursday, and my estimates suggest it will occur near 2875. If we bounce before there, there remains the lingering probability that any rally will be short-lived; persoinally, I'd prefer getting this one outa the way. |
