Sunday, January 24, 2010

"Is it true that Cramer means pimp in French?"

That's the quote of the day. Or yesterday, actually. From a commenter on this CNBC article:

Cramer: Could Obama Cause 1,000-Point Correction?

The Dow has dropped about 550 points already, so I am assuming Jim is talking about 1000 points from here, not from the top. So that would put the market below 9200. There is some potential lateral support from late 2008 there, plus you got some longer-term moving averages in that zone.

My knee-jerk reaction was to view Cramer's bearishness as a contrary indicator, but just looking at the chart of the Dow, the downside figure which he may or may not have pulled out of a hat doesn't look unreasonable.

Personally, I don't have interim targets laid out yet. I'll run some numbers and let subscribers in on some possibilities in the near future.