Tuesday, January 22, 2008

Financial Markets: Prediction for Dow

Dow down to 10,300 by March 4, 2008

Buy DXD which is the Ultrashort for the Dow 30
place a 10% trailing stop sell. If it reaches 10,300 sell at market.

The mood of the country concerning our financial outlook will worsen in part due to the political season where there is much more currency in being negative than being optimistic, especially for the Democrats but even for the Republicans who want to promote their version of change.

Also, it seems clear that there is an economic slowdown, and one rule of markets is that whatever is expected is rarely realized. So if you assume you have the right direction which is down, anticipate further than most.

No comments: