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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Thursday, September 22, 2011

Ok, what now?

We now have our answer, the Federal Reserve Banks announcement was not received well, as the market dropped like a rock as it announced.  The deflationary collapse is continuing today, and since Europe is in a deflationary collapse that cannot be controled, the rabbit hole may go deep.

If S&P 500 breaks below 1,100, gloves are off, next target support is 1,000 then possibly to 780-666 range.
I am holding some longs, but refuse to buy any longs until this indicator crosses upwards (click).
At some point, gold may stop losses and be the one to buck the trend if people start running to it as a safe haven. Over the looong haul (10 years) of course, this can't work either, but it may be a trade I jump into if I see support.

All resource stocks should fail with the market, the next couple of days wont be fun for anyone.
Good luck.

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