What will ultimately happen

Today at 1:30 PM I noted to one of my trading partners that the market would end at its lows for the day because the volume on the upticks were extremely weak. My best guess was for the Dow to end somewhere below the 12300 area but to my surprise the mounting present of the bears sold us off an additional 200 points. Chicago futures traders were on a mission to sell everything they had on paper and end the day at the lowest level in 15 months.
I hate to beat the horse again but this is a bear market! We are 2000 points below the highs in the Dow and the broad base Russell 2000 is now 20% below it summer 2007 highs. We are now seeing the spreading of the mortgage and derivative markets spread to areas of the economy that we thought was fool proof from the mortgage dilemma.
I hope I am totally wrong about this but I saw something today that scared me technically. Today I saw the indices drop the most percentage in months without the markets being in panic mode. This is alarming as I have been saying we must have some from of capitulation (panic selling) before we find a bottom. What is panic selling? Capitulation would be a significant sell climax in the markets where there is virtually no buying 'virtual panic selling' everyone wants to cash out.
We are closer and closer to this point in my opinion and although we might not get the 750-1000 points decline I predicted I still think it is very possible. Today I saw the four horsemen of tech get thrown out with everything else, especially the financials.
Financials are tech are key here because they are the leaders in the economy, some might say commodity based companies especially oil service stocks are now proving to be the leaders but I differ.
Technology and Financials are the leaders hands down and I do see alot more downside especially in tech.
As usual the big guys are manipulating the market and saved this drop in the market till after december so they could collect their record bonuses bt the last laugh might be on them if we head towards full recession as no one will be speared.
Tomorrow is the first option expiration for the year and might be the catalyst for one of two things, 1) more selling or 2)stabilization of some of the selling. M best guess is that next week we might sell hard, with tuesday and wednesday the days to watch for a flush out which should be buyable for a bounce.

OIH- potential set up

OIH - lets keep an eye on it. With a deepen pullback in the market and Oil , OIH have been on a pulback. Currentl is looks like it is setting up for a buy opportunity. I will make a note in m blog if i initiate a trade on it.

Just Ugly

Saying this again. DONT BE AN INVESTOR.
Google down $10 heading to my $550 downside
Apple below my target now at $159 sweet
FSLR wow $175 called it short @230 wow 3 weeks ago sweet.
BIDU down $15 today and now sub $280. wow.
Market is in death mode here and Bernanke talking isn't helping. It will talk alot of buying to get us out of this. STAY SHORT or stay out. Do not buy or pick bottoms.
We are oversold technically here but I think everyone is scared to play the bounce.

Beazer Homes might be closing down. I have no inside information but it seems they might have to declare Bankruptcy. Hmmmm who said that a home builder would go Bankrupt. MARKETJEDI!!!!!!!!

market weak

Well Bernanke is speaking and what the heck is he saying only he knows. Bernanke need to resign as Cramer would say he knows nothing. The FED seem to be non effective in this downturn and the are not in a position to now stop a recession from taking hold. Internals are not that bad but we traded below March 2007 lows which is technically damaging.

Merrill Lynch

Well here we go ago Merrill is writing down $14.2 Billion related to sub prime. Loans are being written down to 34 cent on the dollar, that s a pretty big write down if I should say so. Let's look at this more analytically. Today news makes market write down somewhere near $120 Billion wow, that's a lot of money in money heaven I wish i have 1% of it, well i regress!!! This has alot more to go and let's say this here and now if it wasn't for the Saudi Arabians and the Chinese infusing capital into these institution they would be BANKRUPT.
8:30 Housing numbers were horrible, housing starts for December was down 14.2% and back to 1993 levels. Obviously the economy is on fragile ground and we need to thread lightly. This morning Bernandke speaks at 10 am and it will be very interested to hear what he says in lieu of what happened this morning. I personally believe the FED Chairman should resign as he is too much of an academic to truly prove effective like Greenspan.
The nightmare has just begun to unravel and we will see in a couple of months how it turns out. This morning I was hoping for a gap up to short as yesterday was a very weak showing of the bulls, lets hope that Bernandke will talk us up so we can get short

Good Luck