Today the Dow Jones Industrial Average has jumped over 900 points during the trading day. While this is very exciting, we have to be aware that the Dow will face significant difficulty in getting to 10,000 and staying above that level.
As mentioned before on this blog, The Dow will trade in a range slightly above or below the 9531.11 level or fall back down to the 7773.71 level. A decline to the most recent low would equal a decline of 18%. If you can stomach the downside risk then hold your position. On the way up to the 9500-10,000 level, rather than take additional risk, consider this a good time to research the best and safest alternatives. This market will continue to provide gut wrenching moves, so prepare yourself now for what is to come.
If you have an interest in the nature and extent of the banking crisis then I strongly recommend that you read the Bloomberg article titled, "Banks on the Edge." So much information is in this article that you'd probably come away with a license as a bank examiner once you're done. A hard copy version of this article is strongly recommended. Touc.
As mentioned before on this blog, The Dow will trade in a range slightly above or below the 9531.11 level or fall back down to the 7773.71 level. A decline to the most recent low would equal a decline of 18%. If you can stomach the downside risk then hold your position. On the way up to the 9500-10,000 level, rather than take additional risk, consider this a good time to research the best and safest alternatives. This market will continue to provide gut wrenching moves, so prepare yourself now for what is to come.
If you have an interest in the nature and extent of the banking crisis then I strongly recommend that you read the Bloomberg article titled, "Banks on the Edge." So much information is in this article that you'd probably come away with a license as a bank examiner once you're done. A hard copy version of this article is strongly recommended. Touc.
