Alex Sebastian

Cramer: Dow Could Drop Another 14%, Oil's Going to $50

Hmm, well that's only 279 points off now... Cramer called bottom when July 15, when the Dow touched 10,500. Then he tried to limit his call to the financial stocks. Well XLF has recently dropped below its July 15th low. So he's wrong again. I would like it more if he said, "Look I called bottom here, I was wrong, here's where I see the next bottom". There's nothing wrong with being wrong, just admit to it...

This time I believe him a little more though, we HAVE to be getting close. How long can the VIX stay above 50? I actually see the Dow above 9,000 this time next year. I mean the stockmarket is down 40% on a fears of a recession. Isn't the cost of a recession already priced in? 40% is A LOT. Are companies earnings going to be beat worse than that? I doubt it. That's global depression-like numbers. I am going long this tomorrow at close if we see another big dive..

If MS makes it to the 14th, there is going to be one hell of a short squeeze (that's when the deal closes for their Japanese financing)...