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Bull Market

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Is this a Bull market or is this simply a correction?

Some seem to think that this is just a short term correction and everything will get back to business as usual, but what will that be now that the first time since 1913 America no longer has a AAA credit rating. What we hear from Washington is that the S and P is just wrong, but are they really, ask yourself this question which one of you would have a perfect credit rating if you owed 97 percent of everything you make?

So what can we expect tomorrow?

Likely more of the same probably some serious selling orders will get executed in the AM, some shifting to the commodities markets, will occur, mostly in Grain, but some others will see an increase, Over time there should be a short rally, followed by another sell off, some are predicting a new low in the AM, 10900 but I suspect we may not see that right away. The end could be a good 800 point drop, which would be a very serious situation.

What do we do next?

The end point over the next four weeks, probably around 8900 There will be ups and downs and shifts, between markets, however, the currency markets will see the biggest drops, over the next six weeks watch out for that issue. One thing that is significant here is that this could have all been prevented. Back in the day we used to analyze wrecks, we would look at the circumstances and we would make a judgement call on if the accident was preventable or if it was no fault, most of the time it was preventable.

This wreck was preventable and it is inexcusable that it was allowed to happen.

What makes it even worse is that this is not the hope and the change that 89 percent of the American people want… So when will we learn? When will the congress learn that when someone says hey your credit will be downgraded if we don’t do the right thing.

But they did not listen.

When will they learn?