The fact that today is 2 days to Christmas and there have been a very dismal market move upwards, I think this sets up a bad tone for the markets going into the first quarter of next year.
The market strength is just not there and using technical analysis looking both the DOW and Nasdaq charts it seems the the DJIA is going sideways and the Nasdaq is starting to trend down. Both the DOW and Nasdaq shows declining volumes as well.
Who knows I might be wrong and the markets might rally to new highs next quarter…NOT. The only way this would happen is if the U.S Federal Reserve prints more money and inject it into the market, but usually the Fed needs a reason.
So my theory is that they are going to let the stock markets tank downwards to a certain level, then they are going to announce QE3, or they might just do it in secret…the “plunge protection team” will artificially re-inflate the markets.
My guess is that we go downward until the end of March, April 2012.
by Das Brain
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