CALLING THE SHORT TERM LOW!By Bert Dohmen
Wednesday, August 17th, 2011
Has the extreme market volatility made you dizzy? Most traders have been whipsawed by the fantastic swings, not seen since the crisis of 2008. Let’s see what one expert, who predicted the 2008 crisis (his book PRELUDE TO MELTDOWN written in 2007) and also predicted the current crash as PHASE II of the global crisis, had to say on August 8, the day of the low until now.
Bert Dohmen once again proved that he is not a “PERMA-BEAR,” i.e. someone who is bearish all the time. In bull markets he is bullish, and in bear markets he is bearish. Yes, his clients were short stocks during the current crash.
The prior Saturday, in a special issue of his trading advisory service SMARTE TRADER, he advised to close out all short position on Monday as that would mark a short term low.
On Monday, August 8, the DOW JONES INDUSTRIALS plunged 629 points, providing a great profit taking opportunity for short sellers.
After the close of Monday, Bert Dohmen advised that the markets would have a strong rally the next day, but it would be a brief bounce. On Tuesday, the DOW was up 430 points. Everyone got excited, except Bert.
The next day, Wednesday, the DOW plunged 520 points with the indices closing at their lows of the day.
Bert issued a SMARTE TRADER at the end of the day, saying: the indices will try to make a stand around current levels. He pointed out the facts of his technical analysis indicating that at minimum a short term low in the markets had been made.
The next day, Thursday, the stock market rallied strongly, with the DOW gaining about 424 points. That was followed by a 125 gain the next day, and a gain of 214 points the day after.
Wall Street analysts always tell the public that “no one can time the markets.” However, time and again, Bert Dohmen calls the exact days perfectly. And that is a WRITTEN FACT!
Currently, he says that the U.S. economy is already in a recession, and that the global economies will follow. That certainly will cause a drastic reassessment by Wall Street for the earnings outlook.