It's become comical how so-called professionals are so eager to jump out and yell "bottom" with hopes that this time, they will go down in history as the one who called the market bottom of 2008. They are so-called professionals, because even I know that calling bottoms in a stock market is all about luck and coincidence. Even with market manipulation by program traders, nothing is ever that certain. I seem to remember other bottom calls from Mr. Worth. If not, then this sure is one.
In other news...Dow down 157 points as traders sell into yesterday's "bottom" rally. Let me get into some of this action and say how I see the Dow down at least 300 points at the close, probably by 2:00 PM. I hate talking about market psychology, but it just isn't right. Everyone is fishing the bottom, amateurs and all and I don't see how a bottom ever sets in like that. Just thinking out loud, I wouldn't be shocked at a 700-728 S&P before the year-end. Two things are happening. Funds are selling due to redemptions, which will only increase as the stock market tumbles and funds are making money by shorting to help clean their numbers up for year-end. Nothing says anyone has to go long in order to get their returns looking better for the year. They can do that by shorting the market.
Update: Whiskey Mind story hits the streets, Dow down 212....Just kidding. It's down that much, but I didn't do it.
3:19 PM Update: I wanted to get this in. I dunno. I still think it'll be down, big, at the end of the day...around 3%. It's been cracking a little. We hit the 300 Dow points down, but I'd still be surprised if it didn't close down close to that low. I don't like predictions, but I thought I'd put one out there with all of these guesses about a "bottom." I thought I'd start guessing some too. 275 down points to go.
4:30 PM Update: 338 down. More details in post above. There's a hell of a lot of selling pressure still out there. It just amazes me that "professionals" keep trying to nail a bottom. I thought bottom-fishing was excluded in the first year of business school, on the first day.