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Thursday, August 20, 2009

SPX - market update

The screwing around the 1000 comes to an end as today's New Moon in Leo opposite Neptun ( faking people) should start the blow above 1000 right after expiration. The only thing troubling me is too many people are looking for a correction in Sep which is always a bad omen. Therefor I tend to think that for the big expiration in Sep we will see another screwing - we will get definitely more volatility as the Index should oscillate in a 10% range at least but even 20% is possible but be followed by a sharp upswing confirming the 'uptrend' charade. Expect a drop to 930 from 1030-50 in the late Sep another upside attempt followed by a second downwave in Oct to 830. That would still be considered a healthy correction from the bullish crowd - now everything will depend on the fact if the Obama admin pulls the last joker a second stimulus package to save the year for Wallstreet since they need a plus year - although they could make a killing by trading the yield curve as a sinking stock market would bring in big profits with zero financing - driving bonds higher.Problem they would not have the moral grounds to pay themselves big bonuses with a weak stock market as the public would be upset. The only way they could achieve that would be by bringing the SPX to 1000 at year end and Obama wants to be able to drew a 1 year bottom line picture on the hero side as well so he will support a short lived illusion.

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