EI84mzk2E8AmuBYt0y5NY8kJU3M
nav-left cat-right
cat-right

Will The Stock Market Retest The Lows?

This past month has been great and the way the “experts” are talking, you would think that the bottoms have been found in the stock markets. If we are to learn anything from history, it’s that it tends to repeat itself. During the Great Depression, the markets experienced bull rallies a few times only to reach a new “bottom. The process was dragged out from 1929 to 1932.
.
We only started seeing the signs of a downward spin in November 2007. So what makes them think that we’ve seen a bottom? When the S&P 500 hit 741 and started to climb back up, We heard that this could be the bottom. Only to pull back and fall even further to 666. That level was reached on March 9, 2009, a year and five months after it all started. Throughout that time we also were told that the credit crisis and the housing was so screwed up by “improper practices”. How could this all be figured out and solved in such a short time.
.
Now we’re hearing reports about how some banks that received government money, are looking to give it back. On top of that Goldman Sachs just reported that they nearly double what The Street had expected. Something doesn’t make sense and because of that, I’m expecting us to see the markets drop back down to the lows of March 2009.
.
Another thing to take into consideration is that Barack Obama stated today in a press conference that we will still see an increase in unemployment as well as foreclosures for some time.
.
Do I think that the S&P will fall below 666 soon? That I can’t answer, but I can say that it will be down to that level again before the end of the third quarter of 2009.
In the meantime, I’m going to continue to be a trader and not an investor. I suggest you do the same. If you don’t have time to do your homework on stocks you’re going to invest or trade in, don’t jump in right now. You will see that there will be another opportunity to get back in at lower levels.
.
Happy Trading

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge