Chrslyer Bankruptcy, Consumer Spending Win Out Today

April 30th, 2009

What a great emotional reversal of the markets we watched today. Opening the day we had optimism and the irrational thoughts that we would shoot higher and shrug off the bad news. Then all the investors out there started to think about the reality – i.e. the market is over stretched. We went from a 2% gain to just over-broke all in 1 day. As you can see on a chart of the NASDAQ which has a very dim outlook, we hit again hit the underneath of the major trendline in black. My target is somewhere around 1,500 during late May or Early June.

 

nasdaq1

 

Now, being the professional that I am with the experience I have, I advised everyone this morning that this was nothing but “HOOK-LINE-AND SINKER” for all the investors who listen and follow the media and news. This is why I started this blog – to help everyone not get trapped by these false ideas each day! Most of the people who make up this great blogging community realize that now, but still some are too far gone. Case in point – I got an email today at 11:15am, just minutes after the top today, telling me that he was going long 50% of his portfolio! Of course I tried to tell him otherwise, but people will make their own decisions I guess. So what’s the point Kirk right? The point is this that the charts have all the information you need and all the expectations already priced in. If it hits the news you are too late – period.

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