Hey everyone,

The Dow broke right through that 9,686 level I talked about last night (and the past month) and recovered later in the day, closing at 9,732.  Why is that important?  Because I am waiting for the signal of the real bear market that will occur if we drop under 9,000.  There is very little support under 9,500 and then 9,100 – under these levels, you can literally short just about anything and sleep well at night like when everyone when short in 2008.  Literally everything gaps down the next day, and you rarely get head fake gap ups the next day.  Similar to how the bull market works by gapping each day almost like clockwork, a close under 9,000 will create the opposite.  Pick a Dow or S&P listed stock (or more), short them, and sit back and watch your account grow.

We are not there yet.  So when I see people yapping about “armageddon”  “market crash”  “double dip” I have to just sit back and laugh a bit.  When the bulls become super bullish at the top (back when I was calling for a big market correction back in April HERE in this video) I knew that was the top and also going off of technicals.  Now I hear the bears (who were previous bulls) becoming SUPER bearish like the world is going to blow up and Wall Street is going to look like Skid Row soon.  This starts making me bullish- just like I was before the 700 point reversal from the 9,774 lows earlier this month.

I remember listening to those words back in February 2009 and looking at all the dead stocks left in the rubble and thinking to myself, DAMN this is a buying opportunity…. so many people looked at that like the beginning of the end and I thought screw it, I am buying.  I loaded up with so many shares of LVS stock under $3.00 that I would be rich now… but of course sold too soon.  How would we have ever known LVS would hit almost $30.00 one year after CNBC told us that the financial system and Wall Street as we knew it would be possibly eliminated by 2011 or 2012?  We didn’t.

Listen- I am not trying to insinuate you all to start catching a falling knife…. or pick bottoms here, but you have to realize that the market is NOT in a bear trend yet.  That means that short term rallies can – and will – happen until we get that no-brainer bear trend under 9,000… if it does indeed happen. 

My entire point here is that ideal setups are not here yet (not even any big pumped up OTC stocks ready to dive) and most opportunities are simply scalps due to the intraday volatility and choppiness.  Right when everything starts to look like  a short, BOOM the market spikes right back up.  You are better off playing a slot machine in an LVS casino, rather than trading its stock for now.

The job numbers come out tomorrow, and everyone is bearish on the numbers and expecting the worst.  The market is sitting on some key support here, and probably the average joe went short overnight thinking the obvious- the job numbers will suck so the market will tank – Not so fast…. its not that easy.  Always expect the unexpected in this market.

When the opportunities present themselves (long or short) you better believe I will be on top of it- for now, cash is better than gambling and when this market starts presenting opportunities again, it will be time to take that cash and put it to good use again.. I promise.

Thank you,

Kris
ProphetAlerts.com Staff