Monday August 1. I think the most
realistic thinking is that they will pass something to lift the debt ceiling in
order to avoid USA losing AAA debt rating for the basic reason that a lot of
people would lose a lot of money if that happens. Nevertheless, some people are
surely positioning themselves to gain, for example, by selling short, etc. and
preparing for a debt downgrade.
Our Prediction on 4/28/2011 was that the DJIA would fluctuate between 12 and 13,000 during
2011 and close at 12,700. On 07/21
Thursday the DJIA closed at 12,724.41. This morning at 11 AM PST, it is at
12,044.77. According to the forecast, this is approaching the low. So it should be a good buying opportunity.
I am buying some today, but holding a tiny bit in reserves in case it drops a
little more. Tomorrow Aug. 2 is the deadline for the debt ceiling vote. It
looks like they are dragging out the negotiations to the last minute. But they will pass something to stave
off default, because they are playing chicken but don’t really want to die.
Then the market will go back up.
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