IF THE DOW IS GOING TO HIT 18,000 THIS YEAR...IT IS CLEAR THAT MORE PLUNGE PROTECTION IS GOING TO BE NECESSARY...
THE CHART PATTERNS FOR THE DOW HAVE BEEN SO ODD...AND SO "MANAGED" LOOKING THAT IT IS NOT LIKELY WALL STREET WILL BE ABLE TO GO OUT ON IT'S OWN FOR SOME TIME TO COME...THE "TRAINING WHEELS" WILL BE NECESSARY FOR PERHAPS THE REST OF THIS YEAR...
THE SHILLS WHO DO THE PLUNGE PROTECTION CONTRACT FOR THE FED...WILL NEED TO BE REASSURED THAT THEY ARE NOT GOING TO LOOSE MONEY.
PERHAPS THE PLUNGING DOLLAR WILL DO THE TRICK...AND STABILIZE THE MARKETS...
BUT IT IS ALSO POSSIBLE THAT PURE MACROECONOMIC THEORY WILL KICK IN...AND NO AMOUNT OF PLUNGE PROTECTION WILL MAKE THE US MARKETS ATTRACTIVE TO THE "RIGHT PEOPLE"...
VERY LIKELY A RETRACE OF THE SPRING RALLY BACK DOWN TO 12,000 WILL BE NEEDED...
AND A ONE THOUSAND POINT ONE DAY DROP IN THE DOW IS NOT OUT OF THE QUESTION EVEN NOW.
I EXPECT PLUNGE PROTECTION TO REDOUBLE THEIR EFFORTS IN THE COMING SESSIONS...NEVER UNDERESTIMATE WALL STREETS ABILITY TO PUT ON A HAPPY FACE...AND SING A HAPPY TUNE...
PROBABLY STARTING ON MONDAY MORNING...
