Perhaps as traders we should heed the old adage, sell in May and go away. Take advantage of the coming slow months in equities.
Thursday was only a 30 perecent correction. I would be more interested in a 50% pullback as a chance to get in, fade the misery, and pick up some bargins.
50 percent back in the Dow Cash would be
8861. 50% in the SP500 Cash is 942.50.
Ironically, Cramer on CNBC, juat this Friday said don’t buy the Dow until 9000. I wonder where he got that big idea? I guess he has a calcultor too. I will say that I admire Cramer, unlike most of the commentators out there he has an enviable track record of successful trading.
Trust me, 9000 Dow Cash will be a self-fulfilling prophesy for these markets if we can’t bounce back and go to new higher ground above 11,400. I am still pulling for 11,465. That fact alone makes me want to be careful.
