Thursday, July 28, 2011
The market ended the day at -62 points which was within the +100 to -100 range. Now we admit that range was wide so nothing to brag about. But our reasoning for the wide prediction was spot-on. Most of the day, the market hovered between +10 and -10 which meant the cockroaches couldn't figure out whether to take in profits off yesterday's 'dip' or continue participating in Stage 2 of "Operation Debt Ceiling Fear".
By 3p, based on Absolutely Nothing, it dropped 100pts then bounced a little bit to finish at the 4p bell where we stand- 12,240.
So we accurately predicted today would not be a dramatic sell-off day nor a dramatic buy. We also predicted no debt ceiling/debt restructuring agreement in place (that was a super easy one).
As for the prediction of the media and politicians drumming up the rhetoric- wheww..
"Nancy Pelosi on today's vote: "What we're trying to do is save the world from the Republican budget. We're trying to save life on this planet as we know it today." " -- Weekly Standard
Headline: 'Rep.Clyburn (SC- D) Likens Executive Order To Raise Debt Ceiling To Emancipation Proclamation' -- Real Clear Politics
Tone down the hyperbole and they're correct but still..whewww~
And the last prediction-- about the birds chirping and people living their lives unaffected? Yes- that was another safe prediction as well..
Final tally: 4 for 4
Tomorrow's prediction- Intentional market turbulence & more fear
Posted by Susquehanna at Thursday, July 28, 2011