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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: ild who wrote (63355)6/11/2006 2:38:08 PM
From: UncleBigs  Respond to of 110194
 
with all that talking this week combined with options expiration, this might be the rip roaring rally we need to provide the nice short entry setups.



To: ild who wrote (63355)6/11/2006 9:17:39 PM
From: ild  Read Replies (2) | Respond to of 110194
 
Ben Bernanke and Meat Powder
Make no mistake – the recent pullback has little to do with the Federal Reserve except that it creates enough of an excuse for the inevitable to happen. Are we actually to believe that the economy is so precariously perched on pins and needles that one single quarter-point move too-many in the Fed Funds rate means the difference between a continued economic “boom” and an economy driven to its knees?
By John P. Hussman, Ph.D.
hussmanfunds.com

As I've noted before, bear market psychology typically evolves something like this:


"This is my retirement money. I can't afford to be out of the market anymore!"

"I don't care about the price, just get me in!!"

"It's a healthy correction"

"See, it's already coming back, better buy more before the new highs"

"Alright, a retest. Add to the position - buy the dip"

"What a great move! Am I a genius or what?"

"Uh oh, another selloff. Well, we're probably close to a bottom"

"New low? What's going on?!!"

"Alright, it's too late to sell here, I'll get out on the next rally"

"Hey!! It's coming back. Glad that's over!"

"Another new low. But how much lower can it go?"

"No, really, how much lower can it go?"

"Sweet Mother of Joseph! How much lower can it go?!?"

"There's no way I'll ever make this back!"

"This is my retirement money. I can't afford to be in the market anymore!"

"I don't care about the price, just get me out!!"