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Ok.  I think we can all agree that looking out down below was a good thing today.

260 points down on the DJIA and 32 on the SnP500.  Yeah, that qualifies as a down day.

More importantly, the close was the LOW FOR THIS YEAR.  Now that is saying something.

Today, we made about halfway on the majority of my price targets from the morning.  Tonight after more thorough analysis, I will post my best shot at the buys of the season to be had over the next few days.

Do not forget.  Tomorrow we have Brother Ben speaking to the Joint Economic Committee of the US Congress.  In case you do not follow this stuff closely, there are two Republican firebrands, Ron Paul and Jim DeMint, one Representative, the other a Senator and they are going to roast Brother Ben.

So you will not hear Brother Ben say that "don't worry, we will throw more money at the problem.  Therefore the market will not get a boost from Brother Bens' words tomorrow.  Instead and in fact, quite the opposite.

We also have Factory Orders for September and guess what gang?, tomorrow they will be terrible because of Hurricane Irene.  There you have it.  Brother Ben getting swatted on his nose and butt and no good 'economic news'.

I see a close tomorrow another 15 points down on the SnP500 and the DJIA below 10500.

Light sweet crude oil closes tomorrow at 73, just like I forecast last week for first time below 75 since Sep 2010.

Copper closes below $3, first time since Jul 2010.

And the dollar index closes above 80, first time since Jan 2011.

What does all of this mean?  


It is important to remember that you have to 'nibble' at first.  It is hard to nail the bottom or the top, so you average in and START OUT SMALLLLLL!!!

I screwed up on X and jumped in big at 31-32 and now I am stuck averaging several thousand shares down to the mid 20's. 

NIBBLE!!!, Give it a little time.  Today I nibbled, probably bought about 5000 shares.  This is the setup for me.  Tomorrow, if I am right, gives me the go ahead to continue nibbling.

Now we will get a reveral by Thursday, snapback.

Why?  THE TRADING ELITE!!!!!!!!!

On certain securities, Friday is a Weekly Options expiration so you have to watch those.

BTW, while I am contrarian, I do not short Apple.  It is difficult to short perfection even though I own no Apple products, they get it right.  Best thing to do on them is wait.

I bought 500 shares at 87 in Jan 2009 and stupidly sold for a 20 profit.  Ouch.

We will see GE at 13 and change, BAC at 5, buy the airlines when they crater, because when it is shown there is actually is no recession in the US and oil prices are low, they will jump up.

Same reason that RCL at 20 is a screaming meemie buy and CCL below 30 will definitely make you money.  Never forget the Arison family likes their dividends.  US Steel (NYSE:X) at 20 is also a screaming meemie.

Mark it.  Buy them now at 20 and sell them next June for 40+.  Sure beats 0.15% at the bank.