He is celebrating - over half a year late, but it has finally happened. The ASX is now finally below the point he said that it would capitulate from.
Problem with the US now is you have to many greedey Fat Yanky's that will want to position themselves before any final capitulation. The Dow had a protest reaction to the lack of details from Bush and the sweet nothings from Bernanke.
The rest of the world has taken it to the extreme. So based on the 'F' (Fear) factor of the world's anticipation of a US calamity, a few manipulative Yankee men would have taken out some quick longs as the Dow tapped out around 600 down on the futures. I can see them closing these positions shortly before open and watch them sell into a better than expected opening, before shorting the buggery out of it and letting it go down down down.
Even when the market does eventually bottom, we have the long haul through the "I'll never do that again investors" as they take their money off the table to consolidate and put their lives back together.
Resource stocks should rebound nicely over the next 6 months, but I'm sure caution will prevail as we await to see whether CHINDIA's growth starts to slow significantly. The beauty about these types of markets is people get back to the facts eventually.
ASX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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