We left off in Part II with our Feb 23rd Big Chart Review.
Even though I said: “Once again we are in a market that environment that reminds me of the Simpsons episode where Homer jumps over a gorge, crashes, is taken up by a helicopter (Ben) smashing against the wall along the way only to fall all the way from the top again. Pain, pain and more pain every time we try to get long” – we still weren’t fully prepared for the devastation that was to follow as the Dow fell from 7,500 to 6,500 in the next 10 days. My commentary on the environment the next day was:
According to Cap, someone on the YHOO message board was counting the number of times CNBC talking heads said “nationalization” this morning and, as of 8:15, they were up to 300 times. Sadly, this is the fear-mongering that is driving the markets to new lows while Cramer continues to keep his sheeple out of protective ETFs like SKF. So you have the man’s network telling you financials are going to zero while dog and pony boy tells his minions to sell ALL the financials, causing them to go to zero -even though they could holdon andprotect themselves with conta-funds, if Cramer didn’t spend 3 days a week convincing his viewers contra-funds are poison.I’ve never seen anything like this outside of a racketerring investigation. Speaking ofracketeering -Dennis Kucinich nailed itwhen he pinned that charge on Paulsonand company back in November.
Our wall of worry continues to be a steep one.After yesterday’s failure we do not expect too much out of today, we’ll be happy to just see a bottom at this pointbut it’s looking a littlemore likely that we’re heading into a capitulation event that can take us down to frightening levels. The 60% line is a line the markets dare not cross but, as I pointed out yesterday, we already lost the SOX and the Nikkei, with the Hang Seng and the BSE hanging on by a thread. Let’s take these levels very seriously, if the administration can’t turn it around this week – the downward momentum can easily pick up steam.
I’ll spare you the details other than to say we DIDN’T turn it around that week and the downward momentum DID pick up steam. I was at war with Cramer at the time as he was blatantly ripping off my ideas and trying…
