Many people this week on TV and in the news mentioned that this correction is just a small temporary one. I think much differently from them at this point. in doing my research this weekend, i wanted to target how much the markets were going to decline. going any higher in any markets other than the nasdaq is incredibly dangerous at this point. our economy is weak and i do not see it getting better anytime soon.
on the 10 year charts, the SPX is almost at the same level as it was back in 99-00, just before the equities markets crashed. are we going to crash again here? you can all think what you want to think in the market, but going long in any kind of position aside from metals now, would be what greenspan called "irrational exhuberance." After looking at the RUT, SOX, INDU, COMPQ, and SPX, i can say now that the INDU and SPX are in the same boat. both are at extremely high. our economic strength and war on terror do not support these high prices. the RUT is definitely showing signs of a bubble whereas the SOX is not. where would you put your money? common sense is all you need.
i highly advise caution to anyone holding long positions or picking up long positions. As i've mentioned last week, i predict higher prices in metals, oil, and energy. i would park my money in those types of companies at this time. GL to the socialpicks community! here's a final link for this brief warning from myself here in hawaii.
http://timesofindia.indiatimes.com/NEWS/India_Business/Market...
monday morning. asia is down big. GL!
Happy Trading
-zrvs
$1387.10999 (03/05/07)
