Thursday, January 24, 2008

Invisible Hand Power on Hard or Soft Landing

I noted my thoughts on Soro's comment as shown below. Then, there is Bernanke parody. As noted earlier, I think that the Fed/super rich has a good control over how hard or soft landing we should have during this economic cycle.

On the contrary to Soro thinking on "Banks have lost control":
Yes, banks have lost control, but I think that the Fed has foreseen ARM-melt and has allowed it to happen because they didn't want to micro-manage the industry; however, they knew this would be happening and was thinking remedies.

I noted other speculative, alternative motives of the Fed.




DOW closed at 12378.61 at weekly TL resistance. With the MSFT earning news, it will trade above the resistance tomorrow.

Since Oct 11, 2007 top, Markets corrected: H-L

Qs 23%
Nasdaq 23%
SPX 19%
DOW 18%
NYA 19%
OEX 18%

The above correction easily makes us to think that we are in bear market. I've noted that we could see SPX 1600-1700 in 2008 with the last wave "V" on this reversal low as IT bottom, if not, the low for the year.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=26223710

It is too early to determine whether we will trade to the new bull market targets as we are just coming off from the high volatility. It is easier to think that we are in bear market at this point; nevertheless, I would not rule out that markets will trade to new bull market highs noted above.

During economic down cycle, markets do fluctuate and markets could trade to new highs during the economic down cycle. The formation will create soft economic down cycle period. Nevertheless, I do not think that we are launching a brand new bull market yet as noted on my LT cycle comment that we are in maturing 8 year cycle.

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