it's not a good time to be in stock market atm

I think someone is trying to pump the stock while another someone is trying to cap it. ELM's SP is in very strange situation.

Someone should be pumping for dumping later on. I am saying pumping because someone was buying strangely up to $1.95 in last three days while there were people trying to sell it down. And I believe the cappers will defeat the rampers and sp will go down to $1.60-$1.70 level, then may go down further $1.40-$1.50 because of the cap raising.

The world economies and stock markets are in big trouble. There is no way that the stocks can go up any further than this. Then they have to come down. I don't think there is another way.

Because of that I have sold 75% of my ELM holdings at around $2 last week. I was sitting on only one stock and I thought that was quite a big risk, and got my profits nicely.

ELM's fundamentals are the same, nothing has changed other than control of management which has a very strong tendency to sell more than 30m shares. ELM will have to make the cap raising at much lower price than $2. Otherwise they can't sell at this very bad economic conditions of the world. And the sp will come down at least 5% less than the placement price. That's the rule. Sprott wouldn't buy ELM at $2! If they would I would say the management; "Bravo"

DJ can't go over 14.000 mark, it's not possible. If US would print another trillion dollars, it might happen, but I don't think so. The main problem is; the house prices in US is declining further. That brings very very big trouble as 1/3 of the houses are already in negative gearing. The main reason which the US gov. has made the QE1 and QE2 was for increasing the property prices. But it didn't worked. Money printed for the QEs went to other risky assets, mainly to stock market. So, if there is no new QE, most of this money will get out of stocks, and market will collapse. Defaults and foreclosures may increase significantly then. So we have to be very careful.

Debt crisis will get worst in Europe, Ireland will take the bad position of Greece, Portugal will be like Ireland, Spain will be like Portugal, and Italy will be like Spain. It is all gradually happening.

Also China will have to bring much more tight economic conditions to its market for cooling down its economy. So that will effect Aust. and Canada a lot. (I don't think ELM will find a good market by TSX listing. It'l help ELM's stock price to come down more)

ASX was nearly breaking down the strong support at 4600 today. Next strong support is at 4250. Our economy might come to stall and be devistated by two big dangers, and they are both on the way; 1) Interest rate rise 2) China slow down.

Our retail market is nearly dead. People don't spend any money because of the unprecedented debt burden. Property market is in big danger, so do the banks. Only the resources sector is in business. Most of the investments in resources sector are committed by energy companies and major miners. The junior and small miners are in big trouble btw. Carbon tax will won't help them as well. Their stock prices have come down to half in last 3 months but still the bottom can't be seen. Even the blue chips have come down severely; Qantas, Virgin, Telstra, etc. And I can't see their bottoms either.

I think the whole world economy will be slowing down more than this at a 75% probability. New economic forces will have to be put in place.

I work on probabilities in stock market. If it is 75% negative, I'll go with it and ignore the 25% probability of getting better.

I think it's not a good time be in the stock market atm.