Will astrologers be right about a stock market crash this month?
Posted on 13 December 2008 with 4 comments from readers
The future is always in the stars, or so astrologers would have us believe. I am both a skeptic and also somebody who notes that the patterns in our destiny often seem predestined.
Perhaps astrologers are reading something, if not the stars? In any case there is quite a strong school of thought suggesting a stock market crash or bottom could be reached at the end of this month, see:
http://astrologyandpsychicpredictions.wordpress.com/2008/09/23/the-stock-market-crash-of-1929-now-and-future-crash/
Rally over?
We have had so much volatility this autumn anything is possible. Yet with the auto bailout on hold and fears about a deep recession and the impact on profits uppermost, a sudden collapse of market confidence could be on the cards, or in the stars.
For as investors look forward to the New Year might they not decide to exit? We have seen a nice rally from the lows of November, and the Dow once again seems a tad high for the biggest recession since the 1930s.
Bond market
The bond market is certainly indicating a complete aversion to risk, and that might be compounded by a further withdrawal of funds from stocks and into bonds, sending the dollar higher again.
How low could the Dow go? Q-theory suggests around 4,000 is the next market bottom but that would be reached through a series of failed rallies. But who is to say that is not the market’s next move?
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4 Comments posted by readers:
the time has come, let’s see what this and next week bring us
Actually this was quite a good guide for trading this particular rally – if you had sold and then bought at the March low you would have done very well. So perhaps the stars are not rubbish entirely.
crash or recover– it’s time to find out.
Either way don’t buy now it’s very risky– shouldhave bought in March :]
Ed Note: no buy short positions only!
Cool post! How much stuff did you have to look up in order to write this one? I can tell you put some work in.