Dow May Fall to 6,000 Should Low Break, Acampora Says....

[TraderZones]

Quote from talknet:

Because of $60 Trillion loss DOW is heading towards 2000-levels. According to Dr. Marc Faber S&P 500 is heading towards 100-levels.

By some estimates, combined losses in commodities, stocks, bonds, real estate are greater than $60 trillion. This is beyond rescue. The chart below, borrowed from Dr. Marc Faber's Market Commentary December 1, 2008, is devastating. The chart shows a stunning loss of $30 trillion stock market wealth around the world.

The erroneous interpretation that FDR's government programs combined with accommodative monetary policy led us out of the Great Depression will result in policies that destroy the currency. It is of little value to debate what should be done, because this is what will be done. Dr. Marc Faber in his latest Market Commentary correctly surmises, “I have repeatedly characterized the current economic conditions as comparable to a war being fought between central banks around the world and the private sector and that this war is likely to be very protracted and will lead to high volatility in all asset classes. We have seen that governments are desperate to support asset markets with “extraordinary” and unprecedented monetary and fiscal measures…”

The ill-fated measures will fail and do more harm than good. My interpretation of the charts leads me to conclude that the DJIA will correct all of the way back down to the level of the start of the last secular bull market which began in 1982 of 1000. A similar drop to the 100-level in the S&P 500 is to be also be expected. Gold will resort to its status as a currency and all currencies will deflate against gold. The price of gold will likely top out at a price higher than $1000/oz as the ratio of Dow-to-gold dips below 1:1 as indicated in the chart below:

http://www.marketoracle.co.uk/Article7923.html

If the market lost half its value ($30 out of $60 trillion), then why should the S&P fall by 80-90% under 100 ???

 

[sandygray66]

Good analysis Mvic. Much more insightful than just quoting yet another analyst hack who got it wrong on the way up, and is getting it wrong here near an intermediate (at least) bottom.

 

[forextrades]

At least 6000. Probably more like 3500-4000.

 

[sandygray66]

So....all you fatalists who see the indices falling another 50%.....are you all loaded up on your shorts of the ES, YM, SPY, DIA, etc.? Or is this just all idle chit chat, like spectators at a fist fight who cheer on the fighters, hoping for blood, as long as it's not their own.

I hope you've put your money where your mouths are, because your covering in the coming weeks will provide more fuel to the coming bull run.

 

[talknet]

Quote from TraderZones:

If the market lost half its value ($30 out of $60 trillion), then why should the S&P fall by 80-90% under 100 ???

Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done.

The deflationary credit contraction begins

http://elitetrader.com/vb/showthread.php?s=&threadid=149998

 

[4444CJones4444]

Quote from sandygray66:

So....all you fatalists who see the indices falling another 50%.....are you all loaded up on your shorts of the ES, YM, SPY, DIA, etc.? Or is this just all idle chit chat, like spectators at a fist fight who cheer on the fighters, hoping for blood, as long as it's not their own.

I hope you've put your money where your mouths are, because your covering in the coming weeks will provide more fuel to the coming bull run.

Something tells me 99.9% of the "sky is falling" crowd on ET doesn't have the balls to purchase puts or short equities at these levels.

They sure do like to cut and paste doom and gloom articles and whine like school girls, though.

 

[Bigpipn]

Going short in this market with all the stimulus and unlimited money printing seems insane. The fact is is that we are in a bear market. It will go where it goes. Trade with the trend.

 

[forextrades]

Quote from Bigpipn:

Going short in this market with all the stimulus and unlimited money printing seems insane. The fact is is that we are in a bear market. It will go where it goes. Trade with the trend.

Well, the trend is down.

Sell rallies.

 

[S2007S]

Quote from 1flyfisher:

Lighten up Francis.
Quit whining about people posting/linking articles. It's a positive and they're worth discussing. A lot of articles worth reading get posted on this website that most would not come across.

Keep up the good work S2007S

Landis still thinks the economy is doing fine. He is the perma bull thinking the bottom is in and the end of this credit crisis over since yesterday. He still has no idea the magtitude of this crisis going forward.

 

[S2007S]

Quote from makloda:

Market not turning into a raging bull market = automatically means we'll see new lows after new lows like clockwork?

If you read my past posts you would understand that this market is years and years away from any kind of new bull market. I didn't say that a new bull market = consant to new lows, what I did say is that the market will be range bound for at least 5 years, maybe even a decade or more. Forget about the phrase bull market for now.