So goes January so does the Year

Well it is called the January barometer. Market statisticians watch the market activity in January as a major guideline for the upcoming months. The first trading day of January the DOW ended alittle over 9000, today with one day left in the month to trade we closed@ 8149, that's approximately a 10% drop.
The internals are worrisome we had the worst January, Days up/Day down ratio in years and the sector internals are further worrisome. The thing about the January barometer is that the yearly outcome is usually 2-3 times the effects of the January move, so in theory most statisticians might be looking at a 25-30% drop in the market this year. I firmly believe we will be at that low 6000 sometime this year and with more and more weakness showing up daily with companies profits and lay offs it is not out of the question even for the average joe to see.
Yesterday we had a trade call on the blog for SKF, another awesome call. Its up 15% and I think playing SKF alone this year might be a money tree. The financials are DEAD and they are barely holding up here. There is no doubt in my mind that when the administration sometime in the next week or two announce the details of this bad bank 'solution', we will see the cascade selling of the banking stocks to new lows.
Somewhere before we get back to that November lows I think we get a meaningful bounce but as of today we seem long away from that scenario. I hope you all read my post yesterday on what Jim Rogers, Roubini and George Soros have been saying about the markets. If you dont want to listen to me, PLEASE listen to them, they are echoing the same things I have been saying, position yourself and you will be ok and dont forget this massive inflow of cash into the system only has one way out through:INFLATION.

Global job losses are being estimated @ 50 Million this year that's a staggering number, so if you are crazy to think we getting a bargain on stocks here, they will be alot cheaper later.



MARKETJEDI