UPDATE:
The worst scenario played out today. After doing today’s video we finished the day like this:
We will probably get a bit of a ‘bounce’ higher in the markets tomorrow, but over the next few weeks this pattern usually means lower prices.
As I mentioned in the video, this type of ‘bearish engulfing’ pattern is not good.
From here it’s anyone’s guess what will happen over time, but usually it’s not a good sign.
Let me clarify something. I’ve been watching the markets for 20+ years and have actively traded for many years in the 1980′s and for the last three years and this is the strangest market I have ever seen.
We have had 5 days out of the last 6 that have traded 300 DOW points or more.
With the fundamental problems in the market – Bear, Lehman, AIG – and now Morgan Stanley and GS becoming bank holding companies OVER NIGHT (!)… we are in historic times that will be written about in books and journals for years to come.
Gold is up huge because people are bailing out of securities, money market funds and treasuries. They want something ‘real’…
What happens now? This is another time when I wish I had my crystal ball… stay tuned… this is one of the most exciting periods in market history.