A Self Fulfilling Prophecy
For the past few months many market prognosticators have been on tv stating how the Dow rose too far too fast. The market was up over 40% year to date. They have been stating that we are due for a retest of the market lows set in March. Right now the big buzz is over a classic head and shoulders pattern forming in the S&P 500. Market technicians expect a drop in the S&P to the 810- 820 range and that appears to be happening. This appears to be happening now. I think that a lot of these moves happen because traders listen to what market pundits say and follow their advice. As investors and traders heed the words of prognosticators; it becomes a self fulfilling prophecy. I believe that the S&P is headed downward. Why? Because traders believe it will happen and they have the power to make it happen by selling shares. I bought more shares of SPXU and SDS to take advantage of any decline in the S&P 500.
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