The market fell on Friday as the PIIGS continue to scare US investors. Furthermore, North Korea is playing chihuahua with the world - trying to act big when they are not.
Portugal and Spain insisted that they will not need any bailouts. However, investors think that they might sound like Ireland who bravely said that they do not need any bailouts but succumbed to the pressure.
Irish debt were downgraded so much as speculation mounted that the bailout would require investors to take losses.
Ultimately, the market wants to be assured that the contagious infection will stop at Portugal and not spread to Spain.
This is what I see in my technical charts. The dow is consolidating. The spate of unfortunate events have caused the DOW to consolidate instead of falling into a massive downtrend.
This consolidation only means confidence. And the DOW is going to experience a huge Santa Claus Rally. I think 11500 will be back in a matter of days or weeks.
“Deutsche Bank chief U.S. equities strategist Binky Chadha said he maintains his view that the S&P could reach 1275 by year end, and he expects stronger U.S. economic news to drive it. He said just as the market had declined on weaker than expected numbers in the summer, it should now see a catalyst from upside surprises in the data.”
Happy thanksgiving weekend.
BIG BROTHER is watching our black friday shopping trends.
BIG BROTHER says that the weeks leading up to black friday were very positive as 15% more shoppers have been loitering the stores compared to last year.
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