4 Comments

  1. » Dow Jones 400 to 600 more points of pain The Politics of Debt: Speak Up! Economic and Financial News for the Rest of Us October 22, 2007 @ 5:31 pm

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    […] by Friday or Monday and the next move will continue to be down to below 12,500. Hopefully, the Short Term Bear Fest that I announced in October 12th was starting, is coming to an end. Unfortunately, if it is already […]

  3. An Exercise In Market Timing | The Politics of Debt December 9, 2007 @ 9:44 pm

    […] The next big call comes in October 12th with the article Bad News For the Dow (Short Term Bear Fest). […]

  4. The Politics of Debt » Rally to Begin for At Least Two Months October 3, 2008 @ 12:18 am

    […] have an article about the timing of the “liquidity crisis”, announced the top of the Dow Jones and I even discussed how the new high of the Dow Jones back in October 2007 was just an […]

Bad News For the Dow (Short Term Bear Fest)

Finance Comments (4)

As I write this, the Dow is 47 points up. I would expect it to close down for today. Yesterday was a key reversal day, a technical signal traders pay a lot of attention to. A Key Reversal Day is when the market makes a new high, reverses and closes below the previous low. If today’s close is down, expect a down Monday as well.

The Wall Street sponsored media should start next week pandering bad news and creating a climate of fear using the available examples of very bad October markets. Expect myriads of articles about 1929 and 1987. This climate should keep going to pressure the Fed to cut rates during the next meeting. The Fed should oblige preparing the stage for runaway inflation.

1st Update 2:15 EST
Yahoo publishes the article Prepare for the Crash at Motley Fool (Fri 1:12pm). The funny thing, this is not even a new article: it is a reprint of a 2005 article.

2nd Update 3:35 EST

With less than 30 minutes to the close it does not look like a down close day. The Dow Jones will need to close above yesterday’s high to erase the Key Reversal signal.

Final Update 4 EST

The Dow closed up but still needs to close above 14,101 and later 14,200 to erase the bad vibes.

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Remember this is not financial advice. For more disclosures please check the About page.

Franklin @ October 12, 2007

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