Thats what they said last week.
There is the view that stocks have another 500+ points to go before it bounces. I wouldn’t jump in the market with both feet right now, but it is a good time to start accumulating a position and watch where it goes. Buying on these dips is where the real money is made. The US economy with excellent growth, low inflation, and low unemployment is going fairly strong even with the drag on the economy from housing. The market will be above 14,000 soon, the question is will it go below 13,000 first.
THE MUSIC GOES ROUND AND ROUND
Tommy Dorsey
I blow thru here
The music goes ‘round and around
Whoa-ho-ho-ho-ho-ho
And it comes out here
I push the first valve down
The music goes down and around
Whoa-ho-ho-ho-ho-ho
And it comes out here
I push the middle valve down
The music goes down around below
Below, below, deedle-dee-ho-ho-ho
Listen to the jazz come out
I push the other valve down
The music goes ‘round and around
Whoa-ho-ho-ho-ho-ho
And it comes out here.
The market goes round and round and the Street makes money
Whoa-ho-ho-ho-ho-ho.
When two Dow components like Citigroup and J P Morgan Chase DID NOT participate in the run up from 13k to 14k, I felt that we were nearing a top as though I said last week calling tops is a fools game. This week those two took a further beating owing to bridge loans given on M and A action. When those two very significant Dow 30 stocks find some solid support, I think the market will get back to work on those historical highs.