knowknotwit: The realization that, despite monetary stimulus, that economic conditions, including jobs and retail sales, are recessionary, and that the

knowknotwit: "all in" approach by central banks was not able to reverse this will lead to the panic selling I expect to begin in middle February,

knowknotwit: unrelated to fiscal cliff negotiations. This is a side show compared to the real underlying source of future market woe, which is loss

knowknotwit: of confidence in the effectiveness of monetary policy to prevent economic deterioration, profit contraction, lay offs, etc. This

knowknotwit: acknowledgment will be the impetus for panic selling, a soaring Vix, and a sharp and rapid decline in the stock market.

knowknotwit: I think the markets will actually go up before the steep market decline in February, possibly breaching 1475 first before falling steeply.