We talk about the Fiscal Cliff, but that is not until January 1, 2013. However, we have reached the Market Index Cliff of -8% today, and the “Rot” is setting in. Your Nest Egg is far more important, and the next seven weeks seem to be very critical to you than any Fiscal Cliff; so put in safety measures to buffer any downside surprises.
Fiscal Cliffs make good talking points, but don’t be surprised if they “Kick the Can” down the road one more time, but if you have paid attention to my blog notes, OUR Nest Eggs are sitting on the edge of a cliff as ALL the cushion is deflated NOW! This Stock Market MUST produce a strong Bounce Play soon to get the Nasdaq back up above 3000 in a hurry.
Here is the research I did many moons ago and is self explanatory…we have reached the Market Index Cliff. Be thankful that the Volume today, though heavy, was not excessive ala Flood Gates Open full bore:
So for now, unless there is a surprising big Bounce Play, I say “Goodbye Piccadilly, Farewell Leicester Square”…watch out once the panic starts and we head into Capitulation:
The Nasdaq broke 2940 today…it must hold here and get back up above 3000 quickly:
I am pleased that the process worked as you will recall I gave you a “Big Warning” two weeks ago, and I hope you listened:
…And finally, here is the go to picture to understand that five buckets down should not be taken lightly:
The best of luck in these turbulent times, and make sure your Nest Egg is Hard Boiled and you have taken appropriate action to protect your life savings.