Bear Market Bottom

[Peter Hansen]

Some say 7200 ?

Some say the Dow will hit 7200......but I guess no one knows.....anyone know a good psychic ? LOL

[jiesen]

Yes..we learn from history, but the world is a lot different now and so are the people. I'm not sure the mean reversion applies anymore.

But when we don't learn from history, it does repeat. And fewer people these days are learning anything, let alone history...

[MEA_1956]

It's hard to find a person who can read a tape measure now days.

[New-born baby]

Some say the Dow will hit 7200......but I guess no one knows.....anyone know a good psychic ? LOL

I've got the DOW at 6000. S&P may bottom around . . . 450!

[New-born baby]

But when we don't learn from history, it does repeat. And fewer people these days are learning anything, let alone history...

Jiesen, You're a genius!

[New-born baby]

It's hard to find a person who can read a tape measure now days.

Sadly, it is very true.

[New-born baby]

hey NB i dont think this is a bottom yet either....infact i bought some jan 30 puts today for SWN what do u think??

WE may get a bounce in the market for December. You know, the Santa Claus effect.
SWN: $25 likely; $20 possible.

[New-born baby]

Watch it!

Watch the DOW chart. Folks, let me be blunt. If the Dow breaks 8,000, we are in trouble for the short term (in my opinion)looking for 6,000. Dow support at 8,000 is EXTREMELY important. Not only is it a proven level of support, it's a major psychological barrier for the market.
Take a look at the 60 day chart of the Dow Jones Industrial Average below...
As you can see, 8,000 has been tested twice already. On both occasions, the price action dipped just below 8,000 support, but quickly rebounded and rallied higher. That's normal...there's nothing to worry about as long as the price rebounds quickly intraday after dipping through the support level. Now, if we see a close below 8,000 then you may want to start worrying about your short term long positions.


Furthermore, 8,250 is a major support level in the Dow as well. Keep an eye on price action there if the Dow tests it again.

More importantly, watch very closely if the Dow tests 8,000 again. I'll be ready to short stocks and sell call spreads if I see a clear break. You may want to consider doing the same.

Post some short possibilities on this thread.

[ninner]

well you know

im a bear until i see otherwise and my short is SWN...and the last few days tells the story...its building cause to get down to the 24 level and if it has volume there its going lower ...i still think that 19.05 level has to be retested and if volume is light there then it may be a good place to buy