THIS IS A MARKET THAT IS TRADING "MECHANICALLY"...
THE DAILY "DATA POINTS" ARE ONLY PROVIDING AN "EXCUSE" TO JUSTIFY THE NEXT MECHANICAL MOVE...
THE MARKET IS TRADING BECAUSE IT "MUST"...BY DEFINITION.
BUT MOSTLY BECAUSE THE FED IS PUSHING IT WITH MASSIVE LIQUIDITY INJECTIONS...OTHERWISE IT WOULD LIKELY 'FREEZE UP' ...AS IT ALMOST DID EARLY IN THE CRISIS...
THE "ENGINE" OF THE US ECONOMY IS DEAD...
WALL STREET IS LIKE A PLANE THAT IS FLYING WITH ALL ENGINES OUT...
ONLY MOMENTUM IS BEHIND IT...!!
NICE PLAY ON WORDS PERHAPS.... JUST AS A DEAD PLANE "FLIES" ON IT'S MOMENTUM...SO TO THIS MARKET IS RUNNING ON THE MOMENTUM OF PROGRAM TRADES...COUPLED WITH MASSIVE LIQUIDITY...
THE DOW IS A ZOMBIE... TRYING TO "FIGURE IT OUT" IS FOR FOOLS...!!
ALL THE NUMBERS WILL BE HORRIBLE...PROBABLY FOR A LONG LONG TIME...SURELY IN DECEMBER ....BUT ALSO IN ALL OF 2009...AND PERHAPS 2010...
SO THERE IS STILL A LOT OF CAPITULATION TO BE DONE...
I REMAIN CONVINCED THAT THE DOW WILL LOSE 85% FROM IT'S HIGH OF 14,000...
TO ABOUT 2,400 ON THE DOW...
WE'VE GOT A LONG WAY TO GO...
BUT THAT'S WHAT 2009 AND 2010 ARE FOR...TO MAKE PEOPLE BELIEVERS IN THE LAWS OF ECONOMICS AND THE POWER OF MARKET HISTORY TO REPEAT ITSELF...IN ACCORDANCE WITH THOSE LAWS...
