"The worst of the crisis in Wall Street is over" Warren Buffett

For the last 25 years people have not been saving. Rather they have funded their lifestyles and retirement from an housing/stock bubble.

People were calling the retirement accounts like crazy when the market crashed in September. If the Dow drops below 7000, panic selling will take it down to 6000. The next test would be resistance at 6000. Otherwise we go back to 94/95 levels.

 

we are below 7000 but i dont see any panic !!!!

actually i doubt we will see any panic at all

everybody is short and waiting....

 

Panic selling will start if the Dow breaks the 6000 resistance level.

 

Remember one thing folks , as a former daytrader, charting is not a precise science. It is basically a prediction of the emotions of masses based on their past decisions. Bogart is going by what the charts tell him and it is one important part of trying to read the market.

 

the panic happens when many people are long or have bought stocks and the market goes down. then all these people who were long are trying to get out of their position and cause the panic in the market

now everybody is selling and not many people are buying

hence we can not have panic.....

anyway mate just my opinion

Elvos

 

Margin calls, money market funds breaking the buck and stop-loss orders could fuel a 20% panic drop in the Dow.

6000 is the resistance. If 6000 holds and we get out of March, you are right.