Running out of grim titles for my market forecasts!

Yes, the situation is dire. There is no sign of capitulation yet. We may rally here and there but that's just going to be a bull trap for the unsuspecting by the smart money. The smart money is coming in to the market each day with only one objective and i.e. to liquidate their holdings. Once prices fall to a level at which they are reluctant to sell then they orchestrate fake rallies. They fooled even one of their own, Warren Buffet, in to buying stocks for his personal account recently.

There was a global sell-off on Friday. The futures were locked limit down before the market opened. But when the market opened it didn't even come close to the limit down level. Why? The reason is simple, smart money wouldn't sell at those fire sale prices. So what do they do? Rally the market on low volume, give a false impression as if the market is bottoming and let the dumb money take the bait.

The market has two sides to it and for every winner there is a looser. One doesn't need to be a rocket scientist to know who the looser is invariably. Make no mistake, no one is rooting for the dumb money. So take the advice of these so called experts on the market with a grain of salt.

Nasdaq undercut the prior lows on Friday but S&P and Dow didn't. I think it's only a matter of time before they too. The 2002 lows that are within a shouting distance are the next targets. I have no illusion that the market will go much lower then the 2002 lows, at least S&P and Dow, but am not sure if that business gets finished in this leg or later.