So Dubai decided that it needs more time to pay their debts, and is closer danger of defaulting... SO WHAT? just flood the market with lots of printed money and all will be solved... after all that is what the US gov't is doing...
So this thing with Dubai is probably going to give us that downdraft that is long overdue... whether it's a significant correction, or just a slight pause or bump in the road remains to be seen... The SPY was trading around 111 which is major resistance... so it makes sense that we're going to see some small downside pressure, to perhaps 107-108... if we go below, then maybe this will be a somewhat significant correction, but not enough to stop a mid term up trend... eg. the US gov't will do all it can to prevent a market meltdown... at the expense of the dollar... I still think we should see 120 on the SPY before we have a major correction, and the dollar has to trade below 2008 lows before a snapback to cause the SPY correction...
gold is going to the moon, however i think that one last major shakeout will be coming that will destroy hope in those who have invested in gold, before the real up move happens... a 10-15% correction would be ideal, and would be a nice time to get long into gold...
No comments:
Post a Comment