Yet again when all eyes were focused on the Speech by President Obama, we woke to another whamo from the concerns of a Greek default and all hope of a decent week were shattered with another 300 point drop in the DOW on Friday. The entire situation is on a Knife Edge, so watch out below:
Don’t expect anything earth shattering from Helicopter Ben who also disappointed with no real news last week, so he is in hiding until the FOMC meeting in ten days time on September 20-21, which will coincide with the full roll out of the American Jobs Act Plan with more details. However, that is an eternity for the Market and unless we see a surprise out of Europe to turn the Greek default fears around, the Nasdaq will have a tough time holding the line at 2300, which is now the crucial line in the sand before we fall further into the Mire:
So now that you understand the Emotions driving the Market for the next couple of weeks, let’s review the bidding on what I told you must happen last week and how all of that panned out, first to the upside and then into the Mire on Friday. Here, to refresh your memory were the targets I set:
…And, true to form, we got what we needed almost perfectly. Everything looked rosy at the start of the week with Kahunas galore on 9/7/2011:
But then the Market lowered the boom on Friday with all that kerfuffle on the Greek default situation and we go into next week sitting on a knife edge:
One more day like Friday and we can kiss the so called “Market in Uptrend” goodbye, and the Bears will start their jig again on the short side. So the bottom line of all the efforts of the last three weeks has turned out to be a Fakey, which was to be expected as we have learned since Flash Crash Days:
However, there is a sense that unless there is catastrophic news, this market is marking time, zig-zagging back and forth with an edge to the upside:
…And here for those for whom Hope springs eternal, is an idea which my good friend Maynard Burstein gave me a winky-winky on. Keep an eye on it:
As I close this blog tonight, I spare a thought for the families of the victims of 9-11. Out of that deep sadness came a spirit that united this country as it was never united before or since. If only we could wave a wand and capture that feeling of comradeship again instead of the bickering we see is my sincere wish.
Best Regards, Ian.