Obama's stock market on the brink of collapse

I have not done a stock market post in a while, but this one is important considering the latest developments. The latest time I spoke about Dow 7000 and why a hold of that support line is extremely crucial.

Unfortunately it seems like the break will happen inevitably and doing so will essentially open the flood gates. I have provided a chart for you that someone else made and it illustrates a very obvious long term pattern, a chart of the S&P 500.

Don't mind the wave count, but do realize that flirting with 2001 lows really illustrates the weakness of this market. If in the next few weeks Dow 7000 or in this case S&P 750~ is broken then expect the market to shave off another 50% of it's value! There is good news in all of this though, once a breach of that vital support occurs, a reflexive bounce will occur via a powerful bear rally. Thi rally could be a 30-50% move and will provide an opportunity to exit all long-term positions, however for the most part it will only suck more unsuspected individuals into a powerful move down to the ultimate lows of (Dow ~4000, S&P ~400). This happens in history all the time and will happen again.


If these long term projections are met, then it might take anywhere from 5-12 years to recover back to the highs of 2007!


I call this the Obama stock market because his administration and his policies are completely and utterly responsible for this vicious sell off. Even though the financial collapse is not his doing, the amount of damage his promises and policies do to the market cannot even be measured. War on the wealthy, nationalization of banks, corporate tax increases via loop holes and wealth distribution all have massively detrimental effects. Suffice it to say that we have broken all records for post inauguration week, January, February and will continue making new records. Consequently Obama can be blamed for the destruction of 401ks and I am just afraid at this point that we will go the way of Argentina and confiscation of private IRA accounts. In fact, the worse the market performs the more reason our government officials can procure to exercise control of our moneys. Certainly a very foreboding cycle considering they are very much responsible for the current decline.


Full Disclosure:
I am long on my 401k, given my time projection of about 40+ years.
I am short the market for the short term given the possible collapse of support levels.

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