So What's Next?

The 3 major indices closed a new 52-week low again just now. The next level to monitor remained the same as the last blog entry yesterday.

Today, the new seasons of earnings announcement commenced with AA. It gave a worst than expected earnings results. The stock tanked further after market hours.

Whether a stock goes up or down after its earnings results generally depends on 2 things, the earnings results and its forecast for the next quarter.

With the current market environment, most companies would not dare forecast a better than expected earnings results. As such, I expect the market to drop further this quarter unless there are very good news to lift the market from the Feds, Hank Paulson, etc .

Coincidently, in a bear market, October month is typically a bad month for the Bulls. This is the month to short the market until the chart says otherwise. Typically too, market tends to plunge on Monday or Friday (Black Monday or Black Friday). This is the month to make money!!!

Beware of a quick rebounce though!

Cheers!!!

PersianCat (Millionaire-in-progress)