Thursday, October 16, 2014

S&P 1775 before 1975

says Kevin Cook (video)

The correction should take another 3 to 6 weeks to work out. And then it could take another 3-6 weeks for the market to recover and make new highs. Since a lot of historical evidence pointed toward a strong Q4 -- especially after a strong 20 months -- this correction process will bring lots of unexpected pain to many investors.

I'm not saying with 75% certainty that we see S&P 1775 Before 1975. But I think 1800 is a pretty good bet. This is not a reason to panic. It's actually a terrific opportunity to pick up bargains on the way down while others are panicking. The economy and earnings will likely be seen as still very good for my target of 2250 next year.

Bottom line: Make your buy lists and set up your "order buckets." Their should be some great bargains out there soon. And don't be fooled by the bounce back above 1900 in October. It will get sold faster than you can say "50-day moving average."

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