re: dow below 7000 by end feb
Tend to agree that this is a real possibility. Most technical people I speak to on the futures front saw that if the S&P went under 814 then 767 was a cert - and if we hit that we were going under that level (third time unlucky at that level). This break of 814 we have already seen on Thurs night. Most saw squaring up done on Thursday in the US prior to the long weekend, and also said that Fri was going to be very thin volume - this was borm out in the wild fluctuations. The fact we closed at 837 proves nothing. My belief is that the selling will increase in intensity as we approach Feb 28th (UN inspectors report again) as the US have committed to going in and the disagreement at the UN is getting worse not better. Futures traders see the night of March 3rd as a cert for the invasion as it is a moonless night, so Feb 28th for the low seems plausible. On the S&P they are looking for 727 (~13% fall from curernt levels).
As far as the DOW is concerned - the bottom of the current channel that has been forming for the last 3 years has support at 6800 (similar 14% fall from current levels.).
THESE WILL BE INCREDIBLE BUYING LEVELS. Expect minimum 30% rallies from these points. Get ready guys if we are right about these figures and the developing geopolitical situation this will be an incredible opportunity better than the weeks following 911.
BUY WITHOUT FEAR - THE WAR AND TERROR IS WAY OVERCOOKED.
