Update I just got.
He is waiting for a temp move up to 1180 which he says we will get to in the next day or two, then put it in another aggressive short for 1000.
If you are long short, this does not apply to you.
This is just for people who want to profit from short term dips.
Overall will be real choppy with lots of ups and downs with the downs being much more violent.
The good news is, it will not take long to reach bottom, and we will be able to to go long in the not too distant future with a sideways bottom that is perfect for accumulation.
The bottom will be much more U shapped then it will be V shapped.
This will give those that are not fillty rich to get decently positioned for the upswing.
As for the other question in the thread about the absolute bottom, that answer will get more clear later on.
But make no mistake. 1000 is not the absolute bottom. That is just the near term bottom.
The absolute bottom for right now is going to be at least 800 with the chance of getting in the lower 600's.
There is a real chance that the bottom of 667 in 2009 will be tested. But there is a lot of support down there and it would take a dissaster to go much below that.
But there is nothing in the way of our short term bottom of 1000 which will happen real soon.
The insiders despite what they say on CNBC is not buying anytime soon. The type of insiders that CNBC talks about is not the same kind of insiders that my buddy talks about.
Dont worry about QE3, even if it happened it would not be effective.
Only thing that can prop up market in the near term would be a very aggresive bailout package in the trillions.
This post was edited on 8/11 at 10:17 am