When does the Next Shoe Drop?
Monday’s crash in Japan that spilled over to the US is far from over. Usually when these larger corrections happen they can run 4-5 weeks. This week is a bounce and should allow us to get out of any remaining length and to get positioned into shorts.
The week of August 11-16th looks more vulnerable for another break in stocks even if we get a rubber-band bounce this week. That week could be a 3rd wave down and be more dramatic than the estimated 600 S & P points that have already happened. We can easily see lower prices into the end of August and they could extend easily into the first week of September. That would get the market oversold and ready for a pre-FOMC optimistic bounce.
The elephant in the room is Iran’s pending attack and to what extent the rest of the world will get dragged in.
So what levels will a bounce go to? What is the estimated target for the Sept. low? How do I make money in this situation? Is there hope for next year. Stay on top of these questions by getting a 1 month trial of Fortucast Timers for 97.00/month.
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