Thoughts on the Markets: Bear Markets

A 'retest' of these lows was very much on the agenda the whole time. The bulls need to hope that the FED does NOT intervene soon. They need this flush out, they need the panic that would be created if the lows are taken out in dramatic fashion. Need to see the lows break with a 500-700 pts loss on the DOW in a week or less. Gotta scare the BA-JESUS outta folks. Bear markets end with a very very dramatic market shock events. It could happen next week or in 4 weeks or in six months i don't know when it will happen but that's what 'needs' to happen!


The Chart below depicts the last stages of the 2000-2002 bear market and shows how dramatic the retest was. I was trading during this time and i recall every step and how dramatic and violent the moves were and to think that the DOW was 3000 pts lower back then. It gives me goose bumps just posting the chart. Bear market are so violent and merciless and always end in very very dramatic fashion with VIX spikes in the 30s and 40s. How do you like that for dramatic???!!! This bear market is no different in my mind.







Enjoy!