SPX market update – bottom of this wave in sight

Well Obama said it yesterday stocks are a value here long term. Its outrages for a president to make such a bad and disastrous call. Funny thing will be in the short run he might be right for a brief time but not because they were a value but because soon a bounce will start between Friday and next Friday actually. On the left hand yesterdays SPX counting down to a daily combo 10 and Seq 12 in a 13 Combo week. That kind of information we have on many other charts as well except for the Tech sector. The worst short term version is 602 for the SPX ( magic Fibon. math got me there 38.2% of the high value 1576) I rather think around 650 in a wide sense like plus/minus 20. Mc Laren calculated also by Fibon. a 636 target – hard to say but we might no more by Friday. Tomorrow ECB will have to cut rates by 50 BP but they rather should do 100 BP as inflation does not care if interest rates are at 1% or 0% AND THEY ARE 1 YEAR AWAY. More important is that banks do cıut rates for the customers but they as usual just do the opposite and that’s where the governments do really fail they have the power by all means to force banks to lower rates as they all get bailout money anyway. This is one of the biggest problems in my book those lower rates have to be delivered broadly not to the ones who screwed us all .
Some good bears say this cannot be a bottom as they are done under different parameters I do agree by 1000% ( that’s why Obama should really cut back on such stupid calls) but we have a long time frame for the real low and thats another 2-3 years. As China put more beef on the table others must follow soon and swiftly as at the end that’s all they can do from there end fire all cannons you got. Talking about budgets at the same time is also a very stupid thing to do by any government as pathetic Chancellor. Merkel from Germany does and the Obama boys started as well. Bernanke got that right they have no chance but to throw the full printing force into the game. Its disgusting to hear the Reps talking about budget issues after the wrecked the budget as much as no one before ( so stop bulls… people altogether).

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~ by behindthematrix on March 4, 2009.

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