Weekend Update

I have about three short points to make from stuff I have been reading since the market close yesterday. Firstly most analysts are finally saying there is no housing recover in sight for 2009 and beyond. Unemployment and the credit crisis will be the underlining problem for housing in the upcoming years and I couldn't agree more.
Secondly, I read numerous notes about low of negative GDP, which is not very good. The clincher here though is how the Obama administration deal with the stimulus plan when they take office and the psychology of the process. A little history note here for some of you. After the great depression the stimulus plan did alleviate some of the effects of the depression but it was not the end all of the economic crisis. What really ended the economic crisis of the great depression was the War, yes the War, the trillions that were spent to make the war successful put almost all americans unemployed by the depression back to work and revitalized new areas of the country that were at a stand still. Now I hope it doesn't take a huge war to get us out of this economic woe but through some smarter monetary action by government, especially to put us back on track as a leader in social, educational and health in the world.
Third point to make is great for some of you. From the technicals I have been reading many think we are in the beginning of a correction wave in the markets. I think it is too soon to tell but if we are, it could push us HARD to the upside. The corrective move should be around 50% of the move down, which could point us in the direction of 11000 on the DOW. I personally hope this situation pans out because many have lost much in the markets and this will cut some of those losses for sure. The key though will be to take profits at those levels and ride it down, yes ride it back down, we are in BEAR market and we MUST proceed with caution if we do get a massive rally.
I still think DOW hits 4500, it is a done deal in the next 15 months.


MARKETJEDI