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McDick · 05-18-2008, 11:12 PM

Anyone notice that Dow is getting close to 13,000 again (last time when Dow is 13,000, it is around Jan. 3, 2008)?

Even though US is in a recession, it looks like the stock market doesn't even have an effect from it. It's just not right here.
If anyone read the news or even travel to US, US is still in a deep hole. Foreclosure and unemployment rates are still going up. People are scrambling for cash to pay their bills. If you add the high energy/fuel cost to the equation, US economy should be getting worst. US housing crises is far from over, it will takes at least 12-18 months to recover. Government's stimulus checks won't help much. It might show some signs of recovering, but it's only short-term gains.

My prediction is that US market will test new lows (around 11740 to 12250) before showing sign of recovery in the last quarter of 2008. Also, I think Gold will re-test their new high at $1,030 and oil will be up to $138 in couple months. Oil is due for correction (anywhere from 8-12%), but it will pop back up as people see that as an opportunity to buy oil.

One word to keep in mind - "INFLATION"! ... US has to deal with it sooner or later!

Feel free to leave any comments. Since that's what I am thinking over the past few weeks. I might be wrong, but I got into Gold middle of last week. Still waiting for a good entry point for oil.
Apple (AAPL) is due for a correction. Just wait until Apple releases the new iPhone in early June, the stock will come down to approx $165-170.

05-18-2008, 11:12 PM	#879
McDick Where's my RS Christmas Lobster?! Join Date: Apr 2006 Location: Richmond Posts: 862 Thanked 1 Time in 1 Post Failed 0 Times in 0 Posts	Anyone notice that Dow is getting close to 13,000 again (last time when Dow is 13,000, it is around Jan. 3, 2008)? Even though US is in a recession, it looks like the stock market doesn't even have an effect from it. It's just not right here. If anyone read the news or even travel to US, US is still in a deep hole. Foreclosure and unemployment rates are still going up. People are scrambling for cash to pay their bills. If you add the high energy/fuel cost to the equation, US economy should be getting worst. US housing crises is far from over, it will takes at least 12-18 months to recover. Government's stimulus checks won't help much. It might show some signs of recovering, but it's only short-term gains. My prediction is that US market will test new lows (around 11740 to 12250) before showing sign of recovery in the last quarter of 2008. Also, I think Gold will re-test their new high at $1,030 and oil will be up to $138 in couple months. Oil is due for correction (anywhere from 8-12%), but it will pop back up as people see that as an opportunity to buy oil. One word to keep in mind - "INFLATION"! ... US has to deal with it sooner or later! Feel free to leave any comments. Since that's what I am thinking over the past few weeks. I might be wrong, but I got into Gold middle of last week. Still waiting for a good entry point for oil. Apple (AAPL) is due for a correction. Just wait until Apple releases the new iPhone in early June, the stock will come down to approx $165-170. Last edited by McDick; 05-18-2008 at 11:33 PM.