Sell Tail Starts:
We are Pleased to inform all our reader that popularity of our blog is growing day by day. We are getting thousands of hits .Geographic details of statistics reveal that we have conquered about 70% of globe. After predicting crash in Indian stock market correct we are getting many inquiries about our outlook for rest of the markets. Especially from smart money group like hedge funds are curious to know our out look for American Markets.
Now predicting global markets is like committing suicide i.e. if something wrong goes then people laughs at you if you are survived after suicide due to some reasons. On a lighter part
let us put our neck out and try to predict for them. Let’s talk about Dow & S&P.
Dow is already 87% up from its 2009 low. My gut feel say that Dow is going to fall from here. Worst case scenario I see Dow now falling from these 12100 level to 9990.We are first to give short call to these American markets. Let me give you rational for this fall that I am predicting. And rest of world will fall too.
During the October 1987 and October 1929 stock exchange crashes, the Planet Saturn was in the Astrological sign of Sagittarius. The significance of this is that Sagittarius, the combined horse/man, with Saturn having a connection in Greek / Roman / Etruscan mythology to agriculture as well as weights and measures and coins, means that Saturn in Sagittarius represents the third Horseman of the Apocalypse, economic depression. When Saturn is in Sagittarius you may get the trigger event, such as a stock market crash, that begins an economic depression. Saturn will not be in Sagittarius for many years, but you can still expect great economic chaos in 2011-2012.
Fundamental Bear points :
.Tension in Libya and crude may shoot to 130$ per barrel.
• The good news is all factored into prices. Investors, with optimism at a 10-year high, are too confident.
• A fresh boom in China helped pull the world economy back from the brink. That economic charge may be slowing - the jury is out;
• A recovery in house prices has ended. A second wave of falls, leading to more bad debts, could spark other waves of bank failures or another credit crunch;
• Governments took on too much debt in the boom years, and bad debt from banks, and some could fail to meet repayments;
• Spending cuts in the UK could hamper demand, if creates greater unemployment;
• Deflation may take hold, leading to a falling spiral of consumer and asset prices, including shares.
We see very interesting formation of Sell Tail within the charts of various developed markets. Now let’s see are we able to predict this so called giant fall or it’s just a correction that time shall tell. We suggest all our reader to temporarily quit their equities positions and you may invest in fixed maturity plans.
Always happy to help you all,
Sr Vice President & Head Equities
wiTdom investment advisory