Here's How It'll Play Out

As we get closer to the end of major wave 1 the picture is getting a little clearer.

Down to 650 on the S&P within the next 3 weeks will mark the end of major wave 1.

A rally to the 900-975 range will take place over the next couple of months as hope and wishful thinking that the end of the economic mess is getting close.

Then reality sinks in that we're far from cleaning up the giant mess we've been building the past 20 years. S&P down to 400.

(rough Dow translation: Down to 6300, up to near 10,000 (possibly go over 10,000 by a little bit to suck folks in), drop to 4000))

If I'm correct about the near term bottom and the rally, please heed my advice when we approach 950 on the S&P and I say to GET OUT NOW...

We will not see Dow 14,000 any time in the next decade or more so accept the fact that Dow 10,000 will be as close as we get in order to get out.

We still have a number of shoes to drop... credit card debt, commercial real estate, local and state gov't budget deficits, pension plan problems, corporate bankruptcies...

It'll be easy to get into the mindset that all is well during the upcoming rally and it'll be very difficult to hear that things are not as they appear. I just hope you're willing to take the chance that I'm right when the time comes. You may miss out on a 10% rise if I'm wrong, but you risk losing over 50% of what you have left.

A lot to watch and see, but it's exciting.