Just when you think the market can't go down any more after already going down about 1000 points since Christmas, including an additional 246 point give-back on Friday, for a depressing low of 12,606 -- it's going to! (So much for kicking off 2008 at 14,000.)
So you think, "Ouch! I've never seen anything like this?!?!? This has to be the bottom. It can't go down anymore...it always goes back up -- after it has been down this much. (That's what you though on Thursday before it dropped another 246.)
This week, many banks will be reporting earnings, and sources say the news ain't gonna be good. As a matter of fact, much worse than expected with massive write-downs. So even though the market is already down...do you think it will go up, or down -- based on all the bad financial news that will be hitting this week?
We could be in the 11,000 range by week's end. [Low 12's/high 11's]
I know that's a bold prediction, and I hope it won't happen. But if I had to bet if were hitting 11,999 before 12,999...I'm going with 11,999.
The main point of this thread is to remind you to sell all stocks as soon as possible. (Pre-market trading, if you can.) That's right...you're entire portfolio. Why would you want to hang onto things if you know it's going south?
With the banks releasing earnings this week, you may as well avoid the anvil like free-fall -- and not give back another 600 points (hopefully ONLY 600), just when you thought we hit the bottom and were ready for it to go back up.
I know it's a doomsday scenario. Just trying to make a point. And that is, "Just because the market has been your worst nightmare this year...doesn't mean the credits have rolled yet." (And I say we are not into the final scene.)
strategyupdate.com
Disclosure: AUY, MOS
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