Where is the market headed?

The markets have behaved much as I expected. Many are now getting a bit nervous, frustrated and a tad of panic. The 2 Month charts of the Dow above are worth looking at again. One chart is current of the market right now at 7:00am PST. The other was my prediction back over the weekend of what was about to transpire and so I drew Blue lines on the chart as I expected things to play out. So far, spot on! So what does it mean? Well, if you haven't sold any stock yet and are sitting there like a deer in your headlights, you will have another chance to sell before the big drop off happens. When we form the next leg up of the "W" pattern, that is the time to sell into the strength. We may not get over 10,500 so you will need to sell as we are between 10,400 and 10,500 because that's as high as this market is going for a very long time. They say you can't time things. Well this one you can. Good luck on the protection of any profits you have.

This 3rd chart below shows where I think the Dow is ultimately going and it's not a pretty picture. I posted this before on May 7th and was warning about this drop back on April 10th to 14th. Check out those posts too.


It will get real ugly going forward from this next rise up, so play defensive. Consider some longer term Put Options as the market rises on this last leg up. I don't think you will regret it. Talk to your financial advisor and ask him how you can protect and preserve your assets in a major downturn you think might happen and have no tolerance for. Cash is always an option.