Wednesday, August 10, 2011

Going Lower

We tried to bottom yesterday but you are getting volatility that is greater than May 2010.  That is a warning sign to me that what we have is worse than May 2010, but not as bad as October 2008.  Yet, prices are higher than they were on May 2010, when we bottomed temporarily at 1040.  So there is still plenty of downside if the crowd really panics.  Europe is facing a crisis which is not like its mini crisis in 2010, it is getting full blown when they start going after France.  You have to bring out your crisis playbook here, the normal rules don't apply.  Panic can happen in a flash.  Looking for a retest this week of 1100.

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