Imminent and severe market correction

[sassa]

One blogger's thoughts on reforming the system which is broken and badly needs repair,
http://jessescrossroadscafe.blogspot.com/2009/01/are-we-ready-to-change-system.html
and an excerpt that mentions Australia,but is not expanded upon.

Europe needs to tell the Brits and the Yanks to piss off, fix the euro, take an enormous dose of humility, reform their financial system, and don't play the fool again so easily. Asia needs to take care of its own and grow a middle class, and stop treating its people as coolies. Australia needs to go walkabout with Europe. The Mideast is its own worst enemy. Africa is the shame of our world.

Too radical? Then you're not ready yet for the changes that are required to end this cycle of boom, loot and bust.

It is time to begin serious, and significant, systemic reforms in the financial system. It is preferable to the historically likely alternatives.

 

[davo8]

For a genuinely pessimistic outlook, and totally in keeping with the title of this thread, try Karl Denninger:

http://market-ticker.denninger.net/archives/756-On-The-Edge-of-The-Abyss.html

The rules of technical analysis for this pattern are:

* Pennants are continuation patterns - that is, whatever direction the market is moving when it comes in, it will move when it comes out.
* The minimum target for the move is given by the length of the pole to which the pennant is attached.

In this case the pennant prognosticates a move downward of six hundred S&P 500 points from the break, which occurs at approximately 810.

That gives us a target on the S&P 500 of 210.

No, that's not a misprint.

I said two hundred and ten, and I meant two hundred and ten.

This puts the DOW at TWO THOUSAND.

Cheerful sort of bloke.

 

[Sean K]

For a genuinely pessimistic outlook, and totally in keeping with the title of this thread, try Karl Denninger:

Cheerful sort of bloke.

He's forgotten to use the words; may, could, probability, chance, likelihood, and possibly. There are no definates in any pattern.

 

[explod]

For a genuinely pessimistic outlook, and totally in keeping with the title of this thread, try Karl Denninger:

http://market-ticker.denninger.net/archives/756-On-The-Edge-of-The-Abyss.html



Cheerful sort of bloke.

"The Dow at 2000"

My take of the long term chart indicates that if the Dow falls below 7000 then 4000 is the first major support. However a fall to that level quickly cound see the momentum take it down to a major support at 2000.

Have a look at the Dow on Bigcharts "DJIA all data"

The confusion at the G20 as it closes may see some blood on the floor from tomorrow. I feel like turning the computer off and going away somewhere.

 

[wayneL]

He's forgotten to use the words; may, could, probability, chance, likelihood, and possibly. There are no definates in any pattern.

Good Grief!!!

Even us militant technical analyst warrior traders know that TA is BS. It only works when it works.

To make a case for 210 on the SP based on a measured move is.... frankly, shyte. Of course there is a possibility of it going to 210 at some point in the future, but not because of some poxy, stupid looking pennant.

 

[nunthewiser]

Good Grief!!!

Even us militant technical analyst warrior traders know that TA is BS. It only works when it works.

To make a case for 210 on the SP based on a measured move is.... frankly, shyte. Of course there is a possibility of it going to 210 at some point in the future, but not because of some poxy, stupid looking pennant.

Thanks , good post .. spot on

 

[Aussiejeff]

Hark!

Do I hear the *GRO-O-W-W-L-L-L* of the Bear?

US Markets have tanked o/night (S&P 500 down around 5% so far).

Next leg down for the Lil' Ozzie Bleeder, mayhap?

 

[Aussiejeff]

Here's a snippet from an article today that makes a lot of sense. If you're a Killer Bear, that is.

Bail-out policies designed to keep the property and credit bubbles going will only prolong the agony and bleed taxpayers to death because the losses are way beyond the capacity of government. Paul Krugman, Robert Shiller and many others advocate spending on productive infrastructure to get around the liquidity trap where both consumers and companies have to save and pay down debt.

Kevin Rudd, Gordon Brown and Barack Obama are not doing anything about that. Instead, they are re-arming the bank robbers with billions and accelerating tax cuts. This approach is insane because it will hasten the Big "D".

http://business.theage.com.au/busin...uel-a-monster-mess-20090210-83k7.html?page=-1

How much longer before the REALLY BIG let down in the markets????

 

[GumbyLearner]

Here's a snippet from an article today that makes a lot of sense. If you're a Killer Bear, that is.

http://business.theage.com.au/busin...uel-a-monster-mess-20090210-83k7.html?page=-1

How much longer before the REALLY BIG let down in the markets????

"Kevin Rudd, Gordon Brown and Barack Obama are not doing anything about that. Instead, they are re-arming the bank robbers with billions and accelerating tax cuts. This approach is insane because it will hasten the Big "D"."

Got gold AJ?

 

[Aussiejeff]

"Kevin Rudd, Gordon Brown and Barack Obama are not doing anything about that. Instead, they are re-arming the bank Robs with billions and accelerating tax cuts. This approach is insane because it will hasten the Big "D"."

Got gold AJ?

Hey, speaking of gold - I need your expert advice Gumby.

If I coat a 10c coin with gold leaf worth 5c, would the intrinsic value then make it worth 25c?

I hope to make a killing....

 

[GumbyLearner]

Hey, speaking of gold - I need your expert advice Gumby.

If I coat a 10c coin with gold leaf worth 5c, would the intrinsic value then make it worth 25c?

I hope to make a killing....

I'll buy, but just let me weigh them and assay them first!

 

[noirua]

The answers today by Ben Bernanke to the US Congress seemed somewhat mournful throughout.
Things would have been worse had it not have been for the Federal Reserves actions on interest rates and bailing out the banks.
Trouble is, much concerned comparing the 1930s and the problems of Japan since 1987. Also the inflation specter if money is raised against a backdrop of no recovery.
Enough to trounce markets as the outlook for World economies looks to a worsening scenario with little or no growth.

 

[Aussiejeff]

The answers today by Ben Bernanke to the US Congress seemed somewhat mournful throughout.
Things would have been worse had it not have been for the Federal Reserves actions on interest rates and bailing out the banks.
Trouble is, much concerned comparing the 1930s and the problems of Japan since 1987. Also the inflation specter if money is raised against a backdrop of no recovery.
Enough to trounce markets as the outlook for World economies looks to a worsening scenario with little or no growth.

I never thought I'd see a glimmer of reality in Uncle Sam's jaundiced eye....

 

[sassa]

Last night I watched President Obama hold one of the worst press conferences I can remember a president having. Long answers that were short on any substance and several clear contradictions. In one sentence he said "The days of spending more than we make, and living beyond our means are over". He then went on to detail how the US government is the sole entity that can solve the crisis because it will borrow more than it collects in taxes to live beyond its means. Classic. The President had no details on the rescue package, as he wanted to give Tim Geithner "his day in the Sun" to explain the plan. So I waited for today.

I am still waiting.

The big ball of nothing that was announced today was both a waste of time and a dangerous sign that the headliners in charge are still lost. I am not going to cover any of the plan's details that were announced, as those items as well as 80% of the plan are still in flux. Remember that we are told something has to be done ASAP or the world will collapse, but Giethner says the plan will not be put forward "until they get it right". How does he know when the plan is "right"?

I had warned my more liberal friends that when George Bush was gone, things were not really going to change. Without a convenient target to complain about, people might have to come to terms with the fact that George Bush by himself was not responsible for the economic mess. That blame falls squarely on the FED, the Treasury, the SEC, and the US Congress. All the same players are still there. Today's total bemusing display of incompetence means that the old fool Bush may be gone, but the supporting fools are still in charge.

http://www.economicdisconnect.blogspot.com/

 

[Glen48]

This is the last shot for B. O. and Co. we will see a quick rally and after that it will be all down hill.
Will it take the AUD as well as USD down?

 

[drsmith]

http://www.economicdisconnect.blogspot.com/

Interesting video in that link but as with any politician I'm left wondering about any political motives behind his description of events.

If the global economy would have collapsed within 24 hours (as he describes it), why has there not been another run on the banks (electronic or otherwise) now this is in the public domain ?

 

[CanOz]

You want to be short if this pivot lets go.

CanOz

 

[Aussiejeff]

Looks like an Imminent & Severe Market Correction alright - UP?

Oil slumps to under $US36 bbl overnight, yet almost all Oz oilers UP today. What's UP doc?

Chinese buying UP all our stocks?

"I think I'm turning Cantonese, I think I'm turning Cantonese, I really think so...."

 

[MrBurns]

Looks like an Imminent & Severe Market Correction alright - UP?

Oil slumps to under $US36 bbl overnight, yet almost all Oz oilers UP today. What's UP doc?

Chinese buying UP all our stocks?

"I think I'm turning Cantonese, I think I'm turning Cantonese, I really think so...."

US market drop 5% we drop 10 points, the countries full of optimists, I'm not one of them.

 

[CanOz]

S&P 500 MINI - BEFORE THE OPEN

800 FINALLY GAVE WAY.