Mark Cook: 29% correction in March 2007

<i>"The bounce will sooth a lot of nerves and keep the lemmings into their existing long positions. It's the NEXT WAVE down that will cause the panic."</i>

I would expect a solid bounce back toward recent highs, sooner than later. It better happen on accelerated volume and mile-wide breadth, or the next selloff to follow will make 2/27 look tame.

If this market pops and fails to hold uptrend from there, watch the Dow lose -1,000 points inside of a month. Possibly one week. That's what happens when markets go up on stilts, leaving big gaps and air pockets below. Check the monthly chart of crude oil for a recent example.

Ball's in bull's court. Bounce from above 1350 on big volume and breadth. Keep going steadily up from there with tech, semis and small caps leading the way. Simple as that, bull run continues unfettered. Failure to do that, we'll be trading Dow 10,000 again in 2007.
 
I think that his "bat to the knees" analogy is excellent, I'm personally giving some thought to taking a position this week in double inverse ETFs for both the Dow and the TSX indexes, to be held for a few months.
 
I believe that the inflow of monies are sourced from foreigners. The reason I say this is because I am an old fashioned tape reader. The mechanism of tape reading gives a true feel of how monies are input and withdrawn. I watch the screen almost non-stop from beginning bell to closing bell and I see the same patterns appearing that have the DNA of foreign buying. They have a tendency to be all or nothing. The exodus will be like a stampede which is their tendency I have seen in years past.

Now that is an interesting observation. I would just like to know HOW he can tell that is foreigners buying.
 
My Grandfather Jerry had an oval machine at the top of his closet- yes it was an original ticker. Before Bloomberg was even a thought in the belly of Mrs. Bloomberg- the exchange would sell these tape tickers to folks who actively traded but were a stage below owning a seat.
My grandfather and two of his friends used the machine in a little office in the North Fork of Long Island. As a child I would take it down and look at the gears-- the gears that drive modern society. There were pieces of tape in their too with symbols of long gone steel companies and banks. What a great machine. Then one day when I was away Grandma decided to clean out the closet. Grandpa Jerry was long dead by then I must of been all of eleven and didn't realize the great crime she was about to commit. She walked the gizmo down the hall and left it with the elevator man to take to the garbage. That tape reader by all accounts could pay for my child's college if I still had it.

The reason I say this is because I am an old fashioned tape reader. The mechanism of tape reading gives a true feel of how monies are input and withdrawn. I watch the screen almost non-stop from beginning bell to closing bell and I see the same patterns appearing that have the DNA of foreign buying.

No Sir you are not an old fashioned tape reader- I am. ~ stoney
 
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